Medicare at 65 and Working? What Should You Do?

As our population continues to grow, more people are ending up working past the age of 65. Whether it’s a need for savings, to continue staying busy, or other reasons the fact is the number is growing. According to the U.S Bureau, by 2026, the share of people ages 65 to 74 in the workforce is projected to reach 30.2%. To put this number in perspective in 1996 the number was around 17.5%. With this percentile growing, what should seniors aging into Medicare do?

Will You Face A SubCharge Penalty

Your Medicare eligibility starts at 65. The sooner you apply the easier it is to avoid premium surcharges. This might seem odd for someone who might be working, but those in this category get some slack. If you don’t sign up in the seven-month window, you risk a 10% surcharge on Medicare part b premiums for every year you go without coverage. Workers who have coverage under a group health plan don’t have to worry about enrolling in Medicare as soon as you turn 65. If this applies to you, once you leave your job or your employer stops offering coverage, you receive a special eigh month period to sign up for Medicare called a SEP. Special Enrollment Period is time outside the yearly Open Enrollment Period when you can sign up for health insurance.

You Might Still Consider Medicare If…

If you sign up during the eight-month window you won’t have to worry about the surcharges. It is important to point out you still have to be employed by the person providing coverage in order to receive this benefit. This being said signing up for a plan at 65 isn’t all that bad of an idea. Is your current plan subsidized a little or a lot? Is what your paying for group coverage worth it? How do your benefits look compared to if you were on a medicare plan? These are all good questions to ask yourself when deciding on if you should go ahead and get a Medicare plan at age 65.