Can You Get Medicare If You Retire At Age 62
Generally, no, you cannot get Medicare at 62 if you retire early. You may have recently seen information aboutMedicare at age 60 in the news, but that is not a change that has taken effect. So, how old do you have to be to get Medicare? Enrollment in Medicare requires that you are 65 or older, although there are a couple of exceptions to this rule. First, if you are diagnosed with end-stage renal disease , you can qualify for Medicare at any age. Similarly, if you are diagnosed with amyotrophic lateral sclerosis , you can also qualify for Medicare at any age.
Finally, those who receive Social Security disability benefits can qualify for Medicare at age 62. Typically, you will be automatically enrolled in Medicare after your 24th month of SSDI eligibility. These are the only three methods for a younger individual to qualify for Medicare benefits. If you do not meet one of these criteria, you will not beeligible for Medicare until your 65th birthday. We will discuss the full eligibility criteria for Medicare coverage in the next section.
Who Will Pay For Your Health Care In Retirement
Who will pay for your health care expenses in retirement? This is a good question, whether retirement is just around the corner oreven if it is still far off in the future. Maybe your answer is Medicare will pay for it. And thats partly true, with emphasis on partly. Medicare, the nations federal health insurance program for people over the age of 65, pays benefits if you are eligible for Social Security. If youve noticed the term FICA on your pay stub that stands for Federal Insurance Contributions Act youve been paying into Medicare.
But heres the rub: Medicare covers some medical expenses, but not everything. And it isnt free you pay Medicare premiums in retirement,and these premiums can increase as the years go by, as can your out-of-pocket expenses. Thats why you need to be thinking about having a plan to cover your health care costs beyond Medicare.
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Medicare Doesn’t Kick In Until 65
Medicare benefits donât start until you turn 65. If you retire at 62, youâll need to make sure you can afford health insurance until age 65 when your Medicare benefits begin.
With the Affordable Care Act, you are guaranteed to get coverage even if you have a pre-existing condition. You also can’t be charged more than someone who is healthier. But health insurance pricing can vary by location. Many retirees whose employers paid for their insurance get caught off guard by how expensive it can be.
Also, keep in mind that Medicare does not cover all healthcare costs. Many people purchase additional health coverage to supplement their Medicare benefits. Get quotes on your health insurance costs. Build that expense into your retirement budget.
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If I Retire At Age 62 Will I Be Eligible For Medicare
En español | No, you cant qualify for Medicare before age 65 unless you have a disabling medical condition.
People younger than 65 who receive Social Security Disability Insurance benefits can generally get Medicare 24 months after they become eligible for disability benefits. This waiting period is waived for people who have permanent kidney failure, known as end-stage renal disease , or amyotrophic lateral sclerosis , better known as Lou Gehrigs disease.
Everyone else needs to wait until age 65 to become eligible for Medicare, no matter when they retire. You can sign up during your seven-month initial enrollment period , which begins three months before the month you turn 65 and lasts for three months after your birthday month. The coverage begins no earlier than the month you turn 65. If your birthday is on the first of the month, coverage starts at the beginning of the previous month.
Taxes On Your Benefits
Your Social Security benefits may be partially taxable if your combined income exceeds certain thresholds. Regardless of how much you make, the first 15% of your benefits are not taxed.
The SSA defines combined income using this formula:
- Your adjusted gross income + nontaxable interest + half of your Social Security benefits = your combined income
If you file your federal tax return as an individual and your combined income is $25,000 to $34,000, then you may have to pay income tax on up to 50% of your benefits. If your combined income is more than $34,000, then you may have to pay tax on up to 85% of your benefits.
If youre married, filing a joint return, and your combined income is $32,000 to $44,000, then you may have to pay income tax on up to 50% of your benefits. If your combined income is more than $44,000, then you may have to pay tax on up to 85% of your benefits.
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You May Need To Do Some Planning With Any Employer Health Insurance
Eligibility for employer-offered group health insurance is one of the primary reasons many people under age 65 stay in, or return to, the work force. If you’re 65 or older and already covered by Medicare, check with your employer’s human resources department about how their insurance coverage would work with your Medicare. In short, Medicare could help pick up the tab for expenses not covered by your group plan, but the rules vary depending on how many employees your employer has. For more information, read “Medicare and Other Health Benefits: Your Guide to Who Pays First.”
If you have private health insurance, compare your benefits and coverage with plans offered by a new employer. Although group plans tend to be less expensive than individual policies, you could be better off keeping your individual policy rather than canceling it and hoping you can get your old coverage and rates back later.
What Happens If You Dont Sign Up For Medicare
Its always your choice whether you sign up for Medicare, but you should understand the consequences of not signing up for this health insurance, including:
- Youll pay the full amount for all medical care unless you have private health insurance
- You may face delays getting Medicare coverage in future
- Youll face penalties if you change your mind and sign up for Medicare later
Automatic enrollment for Social Security beneficiaries makes getting Medicare easy. While you always have a choice about which Medicare plans you keep, consider their benefits now and in the future before making any decisions about your insurance-based coverage.
Zia Sherrell is a digital health journalist with over a decade of healthcare experience, a bachelors degree in science from the University of Leeds and a masters degree in public health from the University of Manchester. Her work has appeared in Netdoctor, Medical News Today, Healthline, Business Insider, Cosmopolitan, Yahoo, Harperâs Bazaar, Menâs Health and more.
When shes not typing madly, Zia enjoys traveling and chasing after her dogs.
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Consider The Age Factor
Its important to sign up for Medicare when youre eligible to avoid late enrollment penalties. However, there are situations where you may qualify for a Special Election Period, including losing coverage of an employer group health plan.
Social Security: You can start your retirement benefit at any point from age 62 up until age 70, but your benefit will be higher the longer you delay starting it. Your benefit wont increase after age 70.2
You can determine your full retirement age and calculate your benefits with this Social Security Retirement Age Calculator .
Healthcare planning impact: You can claim Social Security benefits as long as you’ve reached your full retirement age, even if youre still working. Likewise, you can choose to enroll in Medicare once you turn 65, even if youre still covered by your employers healthcare plan.
How Much Does Medicare Cost At Age 65
The standard premium for Part B modestly increases year over year. Part A costs also can increase, including the annual deductible and other coinsurance. Known as hospital insurance, Part A doesnt require a monthly premium as long as you have paid Medicare taxes through employment for at least 10 years.
Part B, known as medical insurance, typically pays 80% of the covered cost while you pay the deductible and then 20%.
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Retiring At 62 Or Before 9 Ways To Cover Your Health Costs For An Early Retirement
There are a lot of hurdles to overcome when figuring out how to retire early before 65. However, early retirement health care is one of the most fiscally challenging. Medical care is going to be expensive no matter when you retire, but the picture is more serious for those who retire early, by choice or otherwise.
Medicare isnt available until age 65 and self-insurance in your 40s, 50s, and 60s can be prohibitively expensive. Never mind that you typically face more health challenges as you age and are therefore more likely to use health care.
Use the NewRetirement Retirement Planner to find out now if you can afford an early retirement and explore the following 9 possibilities for how to cover early retirement health care costs:
Your Social Security Benefits Could Be Taxable
Your modified adjusted gross income matters here. As your MAGI increases above a certain threshold , a greater percentage of your benefits is subject to income tax, to a maximum of 85%.
For details, see IRS Publication 915, “Social Security and Equivalent Railroad Retirement Benefits,” or consult with a tax advisor.
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Can I Retire At 55 And Collect Social Security
So can you retire at 55 and collect Social Security? The answer, unfortunately, is no. The earliest age to begin drawing Social Security retirement benefits is 62. … Once you turn 62, you could claim Social Security retirement benefits but your earnings from consulting work could affect how much you collect.
Get Answers To Your Medicare Questions And Enroll In A Plan
If you have further questions about Medicare eligibility, contact a licensed insurance agent today. A licensed agent can help answer your questions and help you compare Medicare Advantage plans that are available where you live.
Compare Medicare Advantage plans in your area
Or call 1-800-557-6059TTY Users: 711 to speak with a licensed insurance agent. We accept calls 24/7!
About the author
Christian Worstell is a licensed insurance agent and a Senior Staff Writer for MedicareAdvantage.com. He is passionate about helping people navigate the complexities of Medicare and understand their coverage options.
His work has been featured in outlets such as Vox, MSN, and The Washington Post, and he is a frequent contributor to health care and finance blogs.
Christian is a graduate of Shippensburg University with a bachelors degree in journalism. He currently lives in Raleigh, NC.
Where youâve seen coverage of Christianâs research and reports:
MedicareAdvantage.com is a website owned and operated by TZ Insurance Solutions LLC. TZ Insurance Solutions LLC and TruBridge, Inc. represent Medicare Advantage Organizations and Prescription Drug Plans having Medicare contracts enrollment in any plan depends upon contract renewal.
Plan availability varies by region and state. For a complete list of available plans, please contact 1-800-MEDICARE , 24 hours a day/7 days a week or consult www.medicare.gov.
Medicare has neither reviewed nor endorsed this information.
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What Is The Earliest Age To Get Medicare
Remember, Medicare benefits can begin no earlier than age 65. If you are already receiving Social Security, you will automatically be enrolled in Medicare Parts A and B without an additional application. However, because you must pay a premium for Part B coverage, you have the option of turning it down.
What To Consider Before Filing For Social Security
A larger benefit check sounds great, but there are tradeoffs, and soon-to-retire folks should consider multiple issues before they decide one way or the other on when to file. If you really want to consider all the avenues, then youll have to think about your finances and longevity two issues that people have a hard time grappling with.
But heres the key trade-off: you can file early and take a reduced benefit, expecting that a shorter life span will mean you receive more now, or you could file at full retirement age or later and claim a bigger check, and eventually live long enough to claim more than the first approach.
Social Security is like longevity insurance, says Brent Neiser, a Certified Financial Planner and former chair of the Consumer Advisory Board at the Consumer Financial Protection Bureau. Its a stream of payments that will not stop throughout your life, so delaying your benefits to keep those payments as large as possible forms a helpful base to your retirement plan.
Neiser urges those who have not saved enough for retirement to use whatever means possible to postpone their Social Security benefits until after their full retirement age to help boost their future income.
You can use personal savings to help bridge the gap, but ideally you should plan to work a little longer , Neiser says.
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Reaching Age 62 Can Affect Your Spouse’s Medicare Premiums
Although reaching age 62 does not qualify you for Medicare, it can carry some significance for your spouse if they receive Medicare benefits.
When one spouse in a couple turns 62 years old, the other spouse who is at least 65 years old may now qualify for premium-free Medicare Part A if they havent yet qualified based on their own work history.
- For example, Gerald is 65 years old, but he doesnt qualify for premium-free Part A because he did not work the minimum number of years required for eligibility. He can still receive Medicare Part A, but he will have to pay a monthly premium for it. In 2023, the Medicare Part A premium can be as high as $499 per month.
- Lets say Geralds wife, Jessica, reaches age 62 and has worked for the required number of years to qualify for premium-free Part A once she turns 65. Because Jessica is now 62 years old and has met the working requirement, Gerald may now receive premium-free Part A.
In the above example, Jessica has not become eligible for Medicare by turning 62. Her husband Gerald, however, is now eligible to receive his Medicare Part A benefits without paying a monthly premium any longer.
The Downside Of Claiming Early: Reduced Benefits
Consider the following hypothetical example. Colleen is 62 as of 2022. If Colleen waits until age 67 to collect, she will receive approximately $2,000 a month. However, if she begins taking benefits at age 62, sheâll receive only $1,400 a month. This âearly retirementâ penalty is permanent and results in her receiving up to 30% less year after year.
However, if Colleen waits until age 70, her monthly benefits will increase another 24% over what she would receive at her FRA, to a total of $2,480 per month.1 If she were to live to age 89, her lifetime benefits would be about $112,000 more, or at least 24% greater, because she waited until age 70 to collect Social Security benefits.2
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Can I Buy Social Security Credits
You can’t buy Social Security credits, the income-based building blocks of benefit eligibility. You can’t borrow them or transfer them from someone else’s record. The only way to earn your credits is by working and paying Social Security taxes. In 2022, you earn one credit for each $1,510 in income from covered work.
I Pay For Medicare Part A What Happens When My Wife Turns 62
Lets consider a situation in which one person is over age 65, is enrolled in Medicare and is married to a younger person who does not yet qualify for Medicare.
- The 66-year-old husband has not met the work requirements needed to qualify for premium-free Medicare Part A, so he must pay monthly premiums for his Part A hospital insurance coverage.
- His younger wife has satisfied the work requirements necessary to receive premium-free Part A.
- Once his wife reaches age 62, he can qualify for premium-free Medicare Part A based on his spouses work history.
In this scenario, the 62-year-old wife must still wait until she qualifies for Medicare herself before she can enroll in Medicare.
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Health Care Options Between Early Retirement And Medicare
If you plan to retire early, youll need to figure out a plan to pay for health care before you reach Medicare eligibility age. There are a few different options.
If your spouse is still in the workforce, you might be eligible to be covered under their employers health plan if it includes spouses.
You also could opt for COBRA coverage, which allows you to essentially continue using your former employers coverage in some circumstances for a limited amount of time. This option can be expensive since you will have to pay the full premium.
This arrangement may not be sustainable depending on how early you retire since COBRA coverage typically only lasts for 18 to 36 months.
Depending on your financial situation, you may be eligible for Medicaid. Eligibility varies by state, but this is typically an option if you have very little money or income. You also could opt to purchase a private insurance plan.
Reason #: Retire Early If You Are Ready To Simplify
Living more frugally is not a necessity in retirement, but if you think that you can simplify your spending, then you can probably retire at 62 or earlier if you really want to.
When you retire, you have the opportunity to prioritize what is important to you and let the rest slip away. Prioritization can help you reduce your spending levels. And, this can be incredibly freeing.
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