| Tue, Oct 20, 2015 @ 09:00 AM

Born in 1955 or Later? You May Have to Work Until You’re 67

Posted by Medicare Made Clear

social-security-retirement-benefitsOnce upon a time, turning 65 years old meant you could get your full Social Security retirement benefits and Medicare coverage at the same time.

Then the Social Security Administration (SSA) changed the full retirement age to 66 years old for people born from 1948 to 1954. For these people, Medicare will still begin at age 65 even though their full SSA retirement benefit age is 66.

Now there’s another new group of people nearing retirement age — people born in 1955 or later. If you are part of this age group, you will have to wait until age 67 before you reach Social Security’s full retirement age. You will still be eligible for Medicare at age 65, but you’ll have to wait an extra two years before you can receive your full Social Security retirement benefits.

If you want to retire once you reach age 65 and become eligible for Medicare, you will have to evaluate and determine if you can fully retire or if you’ll need to modify your plan for a year or two before taking SSA. Before you make a decision that will affect your life-long financial well-being, calculate your current and long-term financial needs. Use this retirement calculator for an estimate of your Social Security benefits.

Medicare Enrollment Periods if You Work Past Age 65

If you continue to work past age 65 and receive employer-sponsored health care coverage and then you lose that coverage because you retire, you have a certain amount of time to enroll in Medicare. For example:

  • You have 8 months to sign up for Medicare Part A and Part B after you lose your employer-sponsored health coverage. If your employer has more than 20 employees and you enroll during this time, you won’t incur a Part B penalty.
  • You have 63 days to enroll in a Medicare Part C or Part D plan after you lose your employer-sponsored health coverage. You won’t incur a Part D penalty if you enroll in a Part D plan during this time or can show you have prescription drug coverage.

Knowing when to enroll in Medicare is important to your financial and physical well-being. Read more about the Medicare Special Enrollment Period.

How to Pay for Medicare When You Retire

If you are receiving Social Security or Railroad Retirement Board (RRB) benefits, your Medicare Part B premium will be automatically deducted from your monthly benefit payment.

If you are not receiving Social Security or Railroad Retirement Board (RRB) benefits yet, you will get a bill called a “Notice of Medicare Premium Payment Due” (CMS-500). Bills can be paid for by check or money order, a credit or debit card, or through online bill pay services. Read more about Ways to pay Part A & Part B premiums.

You may also be interested in:

You’re 65 and Working: What about Medicare?

Delaying Your Social Security Payments Might Be Worth the Wait

For more information, explore MedicareMadeClear.com or contact the Medicare helpline 24 hours a day, seven days a week at 1-800-MEDICARE (1-800-633-4227), TTY 1-877-486-2048.

Resources:

Delaying Your Social Security Payments Might Be Worth the Wait: Medicare Made Clear

Medicare.gov: Visit the official U.S. government site for Medicare.

Medicare & You: Get the official U.S. government Medicare handbook.

 

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