For many citizens of the United States of America, applying for retirement is a really important time. Social Security takes care of your income from this point on. Despite this, however, it is not a good idea to rely entirely on the Social Security benefit. Having a different source of income, as well as savings, is the best idea to avoid financial problems. Otherwise, the retirement benefit may be insufficient.
On the other hand, one of the great financial benefits for retirees in America is Medicare. While it is not a financial benefit that adds dollars to your pocket every month, it does make it possible for you to stretch your Social Security benefit a little further. Both Medicare Parts A and B are free, although they do have a premium section as well. Part D, on the other hand, is fully paid.
Medicare and Social Security at age 67
So, at this point we can talk about the benefits of having Medicare and applying for retirement at age 67. Applying for Social Security with Full Retirement Age is one of the best decisions, especially if we mix it with using Medicare. Here are the main advantages:
- Time to save. If you are working until age 67, your working years will give you more time to save. Because of this, when you start collecting Social Security and enjoying Medicare, you will have money saved for that time.
- Medicare starts earlier. Medicare services begin at age 65. This means that before you start collecting Social Security, you will have financial benefits for medical expenses. For that reason, the last two years you work, you will be able to save more money each month.
- Higher monthly benefit. The later your retirement age is, the higher your monthly benefit will be. The limit is 70 years old, since after that there is no extra benefit in your monthly check. If you have a large monthly benefit, the benefit from Medicare is more significant. You will have a large amount of money saved because of this.
Through these three points we can discover that applying for Social Security at age 67 (Full Retirement Age) is a great option. On the other hand, it is important to remember that Medicare Part B services include a premium section. This section is paid, but can be cancelled at any time. If you do not cancel this, you will start paying for it from the first month.