As you get close to retirement age, it's time to start thinking about when you are going to apply for Medicare and Social Security benefits. If you want to continue working, and you are getting close to 65 years old, you can still apply for Medicare benefits without retiring. You should apply for Medicare three months before you are going to turn 65, as you are entitled to these benefits whether you already have health insurance or not. Deciding when you retire and apply for Social Security benefits will depend on your age and whether you can afford to retire early or you have to wait until you reach your full retirement age.
Waiting Until You Reach Your Full Retirement Age
When you don't want to stop working and you can afford to wait to receive your Social Security benefits until you reach your full retirement age, you will get your maximum benefits for waiting. In addition, you won't have to worry about continuing to work once you reach your full retirement age and are receiving benefits. When you retire earlier, you may have restrictions on the amount of money you can earn every month. At some point, you may start to lose benefits simply because you are continuing to earn an income.
When You Get Employer Sponsored Health Insurance
Receiving Medicare benefits can have an effect on your current health insurance, so it's important to talk with your employer about how receiving Medicare may work with or against your current health care plan. Whether your benefits are through you, or through your working spouse, Medicare generally supplements your health insurance needs without causing a problem with the benefits you are currently receiving. Part A benefits only will help cover the cost of a nursing home or hospital stay, and those that already have health insurance often choose Part A benefits only.
If You Have a Pension Plan
While you may be able to start collecting pension benefits when you reach 55 years old, you will receive more money each month if you can wait until you reach your full retirement age. If you retire early and you start collecting your pension at the same time, this money will be added to the amount of income you can earn each month. If you want to continue to work, it will benefit you to wait until you reach your full retirement age before collecting your pension.
To learn more, contact a company like Farrah Tax Advisory Group.
Share10 March 2017
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