Turning 65? Here's What You Need to Know About Social Security and Medicare
As you approach your 65th birthday, you may be thinking about retirement and the benefits you will be eligible for, including Social Security and Medicare. Understanding how these programs work and what options are available to you is essential to ensure you are prepared for retirement and healthcare expenses. In this blog post, we will cover the basics of Social Security and Medicare and what you need to know as you turn 65.
Planning for Retirement and Healthcare
Planning for retirement and healthcare is critical, especially as you approach your 65th birthday. Retirement planning includes understanding your expected retirement income, expenses, and any benefits you will be eligible for, such as Social Security. Healthcare planning includes understanding your health insurance options, including Medicare and any employer health coverage you may have. It’s important to plan for both retirement and healthcare to make sure you have enough money to cover your expenses and access to the healthcare you need.
If You Will Continue Working After Turning 65
If you plan to continue working after turning 65, you may not need to apply for Medicare right away. However, it is still important to create an online account for Social Security to review your earnings record and estimate your benefits. You should also submit an application for Medicare Part A only, which covers hospital stays, as soon as you become eligible. If your employer provides health coverage, be sure to learn about how it coordinates with Medicare and what your options are. By continuing to work and maintaining employer insurance, you will not be subject to any penalties once you decide to retire and move into Medicare fully. There are some exceptions to this and if you would like to talk about those, please get in touch with NewLife for more information.
If You Will No Longer Work After Turning 65
If you plan to retire and no longer work after turning 65, you have several options for enrolling in Medicare. If you will receive Social Security payments, you will automatically be enrolled in Medicare Parts A and B. You will receive your Medicare card three months before your 65th birthday. If you will not receive Social Security payments, you will need to create an online account for Social Security and submit an application for Medicare Parts A and B. Take care to stay on top of enrollment deadlines and penalties, so you don’t miss out on coverage or pay more than necessary.
Types of Medicare Plans
There are several types of Medicare plans to choose from, depending on your healthcare needs and budget. Original Medicare is provided to you for paying into the system while working. However, that may not cover all of your healthcare needs. Most people will also need to choose a Medicare Advantage Plan or a Medicare Supplement with a Drug plan.
Original Medicare
Medicare Part A covers hospital stays, skilled nursing facility care, hospice care, and some home health care.
Medicare Part B covers doctor visits, outpatient care, preventive services, and medical equipment.
Medicare Advantage (Part C) is an alternative to traditional Medicare and includes coverage for Parts A and B, as well as additional benefits such as vision, dental, and prescription drug coverage.
Medicare Prescription Drug Coverage (Part D) is available to help cover the cost of prescription drugs.
Medigap (Supplemental Insurance) is available to help cover the out-of-pocket costs of traditional Medicare, such as deductibles and coinsurance.
It’s important to understand the differences between these plans and what they cover to choose the best option for your healthcare needs and budget.
As you turn 65, understanding your options for Social Security and Medicare ensures you are prepared for retirement and healthcare expenses. Whether you plan to continue working or retire, knowing how to enroll in Medicare and what types of plans are available is critical. We encourage you to take action and plan for your retirement and healthcare needs. For more information and assistance, visit the Social Security Administration and Medicare websites or talk to a financial advisor or Medicare insurance professional like NewLife.
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