Mark your calendar for Social Security and Medicare dates
When Medicare and Social Security were first proposed, the ages for claiming benefits might have seemed simple, and it was consistent.
Today, it seems more complicated. Here is a timeline to keep track of those benefit birthdays and what you should know for each.
Note: these are general rules. If you are unsure, you should consult either with Social Security Administration online or in person, with organizations such as APPRISE in Chester County (610-344- 6035), with insurance agents who place Medicare coverages or with an elder law attorney in your individual case to confirm that your information is correct. Some financial planners and some elder law attorneys also become involved in calculating the best times to take Social Security.
Age 65 — Your Medicare Milestone: What you need to know: At age 65 you qualify for Medicare. If you are already receiving Social Security, your Medicare eligibility will likely already be noted with the Social Security Administration. If you are not receiving Social Security, you should file at least for Medicare Part “A” even if you have an employer plan. If you work for a small employer, Medicare A will likely be primary. If you are employed by a larger employer, Medicare A will likely be secondary. Whether you should also file for Medicare “B” and Medicare “D” may depend on your employer plan. If there is “creditable coverage” for Medicare B and Medicare D benefits, you do not need to file for B or D. If the employer does not have this or if you are not employed or are self employed without a company plan, you will likely need to get B and D coverages or you will pay a penalty if you sign up for these coverages later. Also, if you are not employed or are self employed without a company plan, you need to consider whether to take out a Medicare Supplement plan or a Medicare Advantage plan and you must be sure to pay your Medicare B premium. If you are receiving Social Security, this is deducted from your Social Security automatically and it is no problem but, if you are delaying taking Social Security so that your benefit will be higher, you need to be aware to pay the bill you receive from CMS for Medicare B to be able to keep your other health insurance coverages.
In discussions of Social Security, the term full retirement age is often used. This age is different depending on when you were born. For those born between 1943 and 1954, your full retirement age is 66. If you were born in 1955, it is 66 and 2 months. If you were born in 1956, it is 66 and 4 months and so on. Full retirement age determines the age when you can work and collect Social Security without having reductions from your benefit due to working. See below. It also determines the age when you can file and suspend to attempt to maximize benefits for spouses and dependents.
Age 62: What You Need to Know.
Age 62 is the earliest age at which most people can claim retirement benefits under Social Security. If you take benefits at 62, however, the monthly payment is lower than at full retirement age and that will continue. Also, if you continue to work and collect Social Security before full retirement age, as a general rule you want to keep your earnings under $15,720 for 2015. Higher earnings than that (unless you are in your last year before full retirement age) would reduce the benefit you receive by one dollar for every two dollars you would otherwise receive. In the last year before full retirement age, the deduction is $1 for every $3 and you can also earn more that year.
Age 66: What You Need to Know.
This is full retirement age for new members of the system now. See discussion above.
Age 70: What You Need to Know.
If you have not taken your Social Security because you wanted to maximize the benefit, you can take it now at 70. It does not get higher than this. Also, if you have retirement accounts, remember to take the Minimum Required Distribution in another six months at age 70 ½.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.