Are You In A Doubt Regarding Taking Medicare And Social Security? Let Us Clarify This

Q: I recently turned 64 and am now receiving information regarding Medicare, Medigap, and other insurance options. I’m not sure how I’ll retire when the time comes. What exactly am I looking for? Is there anything I can get right now? I’m so perplexed by everything that I’m not sure I’ll be able to retire when the time comes. Maybe I should simply keep working, so I don’t have to think about it.

A: Deciding when to retire from work is a difficult decision for everyone, so don’t feel alone as you try to figure out what’s best for you. We’ll give you some ideas about what you should be looking at today at 64.

You’re receiving unsolicited information on Medicare and “Medigap” because you’re approaching 65, the age when you first become eligible for those senior healthcare benefits. However, suppose you’re still working and have “creditable” healthcare coverage from your employer. In that case, you don’t have to enroll in any Medicare plan until your employer coverage finishes (creditable coverage is a group plan with at least 20 participants). So, if you want to keep working and have enough healthcare coverage, simply disregard all healthcare solicitations. You don’t have to worry about enrolling in Medicare until your creditable employment coverage expires. At this point, you can enroll in a Medicare program without suffering a late enrollment penalty.

You also don’t have to apply for Social Security now (or at 65). You can wait until you retire from a full-time job to apply. You should generally wait until you’re completely retired from working before claiming Social Security because claiming it at 64 (or 65) will expose you to Social Security’s “earnings test.” The earnings test determines how much you can earn before Social Security reduces your benefits. If your earnings are high enough, you may be disqualified from receiving its benefits while still working. The earnings test for Social Security applies until you reach your FRA of 66 years and six months. If you claim Social Security before that date and earn more than the yearly earnings limit ($19,560 in 2022), Social Security Administration (SSA) will deduct $1 for every $2 you earn over the limit. So, if you work full-time and want to continue doing so, deferring your Social Security application would be prudent. Delaying Social Security will also result in a greater payment when you claim because your benefit will rise as long as you wait (up to 70). And while you will become eligible for Medicare when you reach 65, if you’re still working and have creditable healthcare coverage through your employer at the time, you can postpone enrolling in Medicare until your employer coverage expires.

Contact Information:
Email: tcarmack@hotmail.com
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

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I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

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