Due to the fact that Social Security and Medicare are interconnected programs, it is reasonable to presume that the regulations governing both are same. However, in reality, such is not the case.
Beginning at the age of 62, you are eligible to begin receiving Social Security benefits. On the other hand, eligibility for Medicare does not begin until the individual reaches the age of 65.
Furthermore, although it is not required that you join Medicare at the precise age of 65, there are circumstances in which neglecting to do so could result in surcharges being applied to your Part B premiums for the rest of your life.
The premiums for Medicare Part B are deducted directly from the monthly payments that are received by older citizens who are enrolled in both Social Security and Medicare at the same time.
In light of this, you might be tempted to enroll in Social Security rather than Medicare because of the reasons stated above. However, from a financial point of view, this might not be the best course of action.
Don’t give up your revenue in exchange for ease.
It is possible that the concept of enrolling in Medicare while you are receiving Social Security benefits is appealing to you because it will allow your Part B premiums to be paid automatically.
On the other hand, and despite the fact that this might be a handy way to pay those premiums, what you gain in that aspect is what you lose in terms of your monthly Social Security benefit.
Before you reach your full retirement age (FRA), you will not be eligible to receive the full amount of your monthly Social Security payment, which is determined by your specific income history.
In addition, the FRA can be either 66 or 67, or it can be somewhere in between, depending on the year that you were born.
In the event that you petition for Social Security benefits before attaining the age of eligibility, you will be subject to a reduction in your monthly benefits, the magnitude of which will be determined by how early you submit.
But to put this into perspective, if you sign up for Social Security at the age of 62 and have a full retirement age of 67, you might see a thirty percent reduction in your monthly benefits.
It is for this reason that you should consider delaying your application for Social Security until after you have already enrolled in Medicare.
It does not matter when you were born; you will not attain the Federal Retirement Age (FRA) before you are eligible to participate in Medicare service.
In addition, Social Security permits you to postpone your filing until after your FRA has passed. And each year that you do so, up until the point that you reach the age of 70, your benefits receive an outstanding 8% increase.
If you receive a raise of that magnitude, it might be simpler for you to pay your Medicare costs during your retirement years.
Caution: Enrolling in Social Security Before Medicare May Impact Benefits
You could believe that the most straightforward course of action would be to enroll in Social Security before Medicare, or even to enroll in both programs simultaneously.
This is a common misconception. However, doing so may result in a reduction in the amount of Social Security benefits you receive for your entire life.
In addition, considering that the expenses of Medicare have the potential to increase over time, reducing the amount of Social Security you receive could end up being a risky financial move that will come back to haunt you in the future.
In the event that you have delayed enrolling in Medicare owing to having group health plan coverage via your place of employment, it is advisable that you sign up for both Social Security and Medicare at the same time or at a period that is somewhat close to it. At the age of 67, for instance, if you are enrolling in Medicare for the first time, you are already qualified for your full monthly Social Security income since you have reached your full retirement age (FRA).
Signing up for both programs at the same time becomes more of a challenge when you are considering reducing the amount of money you receive from Social Security.
