Personal Finance

I'm 65 and Need Medicare. Should I Claim Social Security, Too?

Maurie Backman

Published: November 14, 2024 9:15 am

Right now, a lot of older Americans have Medicare on the brain because we’re in the midst of the program’s fall open enrollment period. But one misconception about open enrollment is that it’s when you’re supposed to sign up for Medicare coverage.

Fall open enrollment is for current Medicare participants only. Your initial window to sign up for Medicare starts three months before the month of your 65th birthday, and it ends three months after that month. And your coverage itself begins at 65.

Key Insights from 24/7 Wall St.

• Medicare coverage starts at 65, but claiming Social Security at that point results in a reduced benefit.
• Consider holding off on Social Security if you don’t have much savings and think you’ll be very dependent on it.
• You may be okay to sign up for Social Security at 65 if you have other income sources available to you.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

If you’re 65 and entitled to Medicare, you may be wondering whether you should sign up for Social Security benefits at the same time. But it’s important to understand the consequences of doing so.

Don’t File for Benefits at the Wrong Time

The monthly benefit Social Security pays you throughout retirement will hinge on your earnings history and filing age. You’re eligible for that monthly benefit without a reduction once you reach full retirement age.

If you’re 65 already and were born in 1959, full retirement age for Social Security is 66 and 10 months. If you were born in 1960 and turn 65 soon, your full retirement age to get benefits is 67.

Claiming Social Security before reaching full retirement age will result in a reduced benefit. So that’s a not good reason not to sign up for Social Security in conjunction with your Medicare enrollment at 65. However, you’ll need to consider your personal situation when making that choice.

An Early Social Security Filing Isn’t Always Terrible

Filing for Social Security ahead of full retirement age can be problematic when you don’t have much savings and your monthly benefit constitutes the bulk, or all, of your retirement income. The average retired worker on Social Security today collects about $1,924 a month. Living on your complete monthly benefit alone is hard enough, so you don’t want to make life more difficult by filing early and getting less.

But if you have income available to you in retirement outside of Social Security, then signing up at the same time as Medicare isn’t such a terrible idea. First of all, you’re not facing the largest reduction possible to your monthly benefit — that only happens if you file at the earliest possible age of 62.

Also, if Social Security is only one of several income sources at your disposal in retirement, then a modestly reduced benefit may not be so detrimental. It may be that you have a decent-sized nest egg, a second home you rent out for money, and a family business that cuts you a check every month. In a situation like that, a small hit to your ongoing Social Security payments may not matter. And that way, if you decide you’re ready to retire at 65, you’ll have more options for replacing your missing paycheck.

To be clear, there’s no need to sign up for Social Security at the same time as Medicare. Many people get health coverage through Medicare for years before taking benefits. And there’s an upside to waiting on Social Security beyond full retirement age. For each year you do, up until age 70, your benefit gets an 8% increase.

But you should also know that you don’t have to claim Social Security when you sign up for Medicare. And in some cases, waiting is the more financially sound move.