Social Security -- The Cornerstone For Most Retirees
Social Security is the cornerstone of retirement income for most retirees. When you choose to start receiving your Social Security Income (Annuity) can have a big impact on your healthcare and Medicare options. Be very careful what you choose to do!
Social Security Between 62-65
If you choose to start collecting Social Security Income from age 62 and up to age 65, you need to know that, unless you are on Social Security Disability Income (SSDI), you will not have the option for Medicare.
What HealthCare Coverage Options Will You Have Prior to 65?
- You will have to either stay on your employer’s or spouse’s employer’s health insurance (if you are allowed).
- Enroll in either an On-Exchange or Off-Exchange Individual Major Medical plan.
- You could also consider a Short-Term Medical Insurance plan. Many times you can receive comparable coverage with a Short-Term Medical Insurance plan at a lower premium. In either case, you will have to shop around for coverage if group insurance is not available through an employer. I suggest you start by going to the HealthCare.gov website to explore your options and to see if you qualify for an On-Exchange plan that will give you a tax credit and/or a subsidy.
- Medicaid: Depending on your financial and/or health status, you may qualify for Medicaid. Check with your state Medicaid office and/or your local Social Services department.
- Medical Sharing Ministry: If you have a religious affiliation, then there are numerous Medical Sharing Ministry options you can consider. There are even some “crowd” sharing plans where you need no religious affiliation. You can search online for “healthcare sharing” or “medical sharing ministry” to find out more. I’m including a short list here. I am not endorsing any one of these, they are purely for informational purposes.
I suggest, before you commit to retiring and collecting Social Security prior to your Medicare starting, you do your due diligence and check what your healthcare premiums will be. Unfortunately, many people choose to retire early, collect Social Security at 62 and then come to find out that they have to pay $500-$800 per month for a healthcare plan. You may indeed find that it’s just not practical or affordable to retire prior to being able to go on Medicare.
Social Security At 65
Once you turn 65, and you qualify for and are enrolled in both Medicare Part A and Part B, you will then be eligible for both Medicare Supplements and Medicare Advantage Plans. See the Turning 65 page for more info and contact me to review ALL of your choices.
Social Security After 65
Some people either continue working past 65 or they delay their Social Security benefit to receive more later. But that doesn’t mean you can’t receive your Medicare Part A and Part B.
You will likely get Part A by default when turning 65. You can also enroll in Medicare Part B at 65 even without collecting Social Security. In this case, instead of Social Security deducting your Medicare Part B premium from your Social Security check each month, you will have to make quarterly payments directly to Medicare/Social Security.
If you work past 65 and have group coverage, then you may not need Part B at all. You can enroll in it later once you know you are fully retiring and/or losing your employer healthcare coverage.
