Social Security Question

[Peter1469]

I think you have to apply for Medicare. There are penalties associated with filing late.

Is Medicare mandatory?

Medicare is a federal benefit that you pay for through taxes during your working years. At age 65, or if you have certain disabilities, you become eligible for health coverage through various parts of the Medicare program.


While Medicare isn’t necessarily mandatory, it is automatically offered in some situations, and may take some effort to opt out of.

Are there penalties if you don’t enroll in Medicare when you are eligible?

The penalties for choosing not to enroll in Medicare, or enrolling late, can be just as confusing as figuring out which parts of the program are mandatory. The penalty levels for not enrolling when you are first eligible for Medicare, again, depend on the program.

I'm a ways off from retirement, but like you, I don't want to retire and I intend to work as long as I can.

Someone here--maybe Dr. Who?--said I should that even though I don't want to retire, I need to apply for (I think) Medicare because otherwise, I'll miss out on something. Darnit! I even printed that advice out and now I can't find what I did with it.

I hope she (or whoever offered the advice) sees this thread.

I'm pretty sure it was important.

Now, I feel as though dementia is setting in and perhaps I should retire early. LOL

[carolina73]

I'm 66 and I have no intention of retiring from my present job any time soon...but I'm wondering whether there is any substantive upside, in my case, to my waiting till I'm 70 to apply for Security Security benefits.

They urge you to wait by dangling that extra monthly payout - in my case, about $600 - if you wait until you're older. But I've done the math, and between now and when I turn 70, if I apply and start collecting benefits now, I'll collect in excess of $77K during that 3 1/2 years. Not a fortune, but a nice chunk of money. On the other hand, if I wait until 70 to apply, that extra $600 a month would not add up to $77K until I was 81 years old. And given my medical history and condition, that is a considerable long shot; if I make it to 75, quite frankly I'll be surprised.

My Social Security income is always going to be taxable at the maximum 85% regardless of when I take it and whether or not I'm working, because my military pension plus the percentage of the payments they count as income would push me over that threshold at which the 85% kicks in.

If I apply for and start receiving payments now, chances are I would be able to just save or invest the money, so I'm trying to determine whether there is any downside to my doing it now instead of waiting.

Because this is some thing that I will have to deal with, you got me really curious. The on biggest draw back to collecting early is that your wife would only get half of your reduced benefit.
So, if your wife has a long bloodline it could cost her serious money after you pass. The example I saw was that the spouse would collect 32.5% of your benefit if you retire at 65 instead of 50% at 70.

[Standing Wolf]

Because this is some thing that I will have to deal with, you got me really curious. The on biggest draw back to collecting early is that your wife would only get half of your reduced benefit.
So, if your wife has a long bloodline it could cost her serious money after you pass. The example I saw was that the spouse would collect 32.5% of your benefit if you retire at 65 instead of 50% at 70.

That is something I will definitely have to look into. Thanks!

[Standing Wolf]

Because this is some thing that I will have to deal with, you got me really curious. The on biggest draw back to collecting early is that your wife would only get half of your reduced benefit.
So, if your wife has a long bloodline it could cost her serious money after you pass. The example I saw was that the spouse would collect 32.5% of your benefit if you retire at 65 instead of 50% at 70.

I did some further reading on the SSA website, and from what I'm seeing there as long as I was at my full retirement age of 66 (which I am now) when I begin drawing benefits, the spousal survivor benefit would be 100%. I think the only thing that would reduce the percentage would be if the surviving spouse is not, themselves, of retirement age - and mine is 62 now, so that isn't an issue.

[FindersKeepers]

I think you have to apply for Medicare. There are penalties associated with filing late.

Thanks Peter.

I knew there was something about that.

[Peter1469]

Thanks Peter.

I knew there was something about that.

I expect that once you are 65 a private plan (other than Medicare supplements) wouldn't see you a policy.

[Hoosier8]

I'm 66 and I have no intention of retiring from my present job any time soon...but I'm wondering whether there is any substantive upside, in my case, to my waiting till I'm 70 to apply for Security Security benefits.

They urge you to wait by dangling that extra monthly payout - in my case, about $600 - if you wait until you're older. But I've done the math, and between now and when I turn 70, if I apply and start collecting benefits now, I'll collect in excess of $77K during that 3 1/2 years. Not a fortune, but a nice chunk of money. On the other hand, if I wait until 70 to apply, that extra $600 a month would not add up to $77K until I was 81 years old. And given my medical history and condition, that is a considerable long shot; if I make it to 75, quite frankly I'll be surprised.

My Social Security income is always going to be taxable at the maximum 85% regardless of when I take it and whether or not I'm working, because my military pension plus the percentage of the payments they count as income would push me over that threshold at which the 85% kicks in.

If I apply for and start receiving payments now, chances are I would be able to just save or invest the money, so I'm trying to determine whether there is any downside to my doing it now instead of waiting.

Did the calc myself and decided to take SS at 66. Still plan on retiring around 70. Gain 120k extra by 70 and payback if I waited till 70 was something like 3.5 years. Who knows if I would live that long.

[Hoosier8]

I think you have to apply for Medicare. There are penalties associated with filing late.

At 65. Since I still work and have insurance I can wait to get plan B when I retire.

[texan]

Yes, in 3035 checks get slashed by 25% unless Congress does something.

3035 or 2025?

[Peter1469]

3035 or 2025?

2035