Turning 65: Here Are the 7 Critical Things You Need to Do Now
Category: Retirement Planning
Jan. 26, 2025 – This year more Americans will reach their 65th birthday than in any year in history – 4.2 million of them. Currently, about 10,000 individuals reach this age daily, a rate that is projected to continue through 2027, when the baby boom bulge slides into older age brackets. If you are having your birthday, or if you are getting close, here are 7 things you need to do now to secure your retirement.
1. Register for Medicare for health care coverage
Medicare is a Health Insurance Program for people age 65 or older, some disabled
people under age 65, and people of all ages with End-Stage Renal Disease. Most people become eligible for Medicare at age 65. If you’ve worked at least 10 years (40 quarters) and paid Medicare taxes, you qualify for premium-free Part A.
Automatic Enrollment:
- If you’re already receiving Social Security or Railroad Retirement benefits:
- You’ll be automatically enrolled in Medicare Part A and Part B starting the first day of the month you turn 65.
- You’ll receive your Medicare card about 3 months before your birthday.
Manual Enrollment (if not automatically enrolled):
You can sign up 3 months before your 65th birthday. Call Social Security at 1-800-772-1213 (TTY: 1-800-325-0778)
Apply online at the Social Security Administration website: www.ssa.gov/medicare. Or visit your local Social Security office.
Even if you keep working after you turn 65, you should sign up for Medicare Part A. If you have health coverage through your employer or union, Part A may still help pay some of the costs not covered by your group health plan. However, you may want to wait to sign up for Medicare Part B or Medicare Advantage if you or your spouse are working and have group health coverage, because you will be paying the premium for coverage you are probably already getting. If in doubt, ask your employer for help.
2. Decide about Supplemental Medicare Insurance
Supplemental Medicare insurance, (Part B, etc.) pays for many things outside of Part
A, especially doctor visits and prescription drugs. A major decision is whether to opt for Part B (traditional Medicare), or go for some type of Medicare Advantage Plan (Part C), of which there are many varieties. Medicare Advantage Plans are offered by private companies approved by Medicare. If you join a Medicare Advantage Plan, the plan will provide all of your Part A (Hospital Insurance) and Part B (Medical Insurance) coverage. Medicare Advantage Plans attract many retirees because they have zero or very low premiums, plus extra coverage for vision, hearing, dental, and/or health and wellness programs. Most include Medicare prescription drug coverage (Part D). On the negative side, these plans might have more gatekeepers and out of coverage restrictions than Part B. More on Part C.
The decision on which type of supplemental insurance is very important. Although you can switch from Part B to Medicare Advantage or vice versa without risk of being denied or rated when you first sign up, later on that is not true in some states. There are Open Enrollment Periods every year when you can change your type of plan.
3. Part D – Medicare Prescription Drug Coverage Decision
Medicare prescription drug coverage is insurance run by an insurance company or other private company approved by Medicare. There are two ways to get Medicare prescription drug coverage:
1. Medicare Prescription Drug Plans (Part D). These plans add drug coverage to Original Medicare.
2. Medicare Advantage Plans (like an HMO or PPO) usually include Medicare prescription drug coverage.
Important: If you decide not to join a Medicare drug plan when you’re first eligible, and you don’t have other credible prescription drug coverage, you will likely pay a late enrollment penalty from then until when you die (this happened to your editor, much to my wife’s amusement).
The Medicare Drug Plan Finder can help you find and compare plans in your area.
4. Decide when you want to start receiving social security.
If you have already started taking your benefits this question doesn’t apply. For people born in 1960 your full retirement is 67 – you have 2 more years to go before getting the “Full Retirement Age” Benefit. Here’s how it works:
Early Retirement: You can start claiming Social Security as early as age 62, but your benefits will be reduced permanently. If you claim at 62, your monthly benefit will be about 30% less than your full retirement amount.
Delayed Retirement Credits: If you delay claiming benefits past age 67, your benefit increases until age 70. For each year you delay, your monthly benefit rises by about 8% due to delayed retirement credits.ou wait.
When to start taking your benefits is an important question with many different factors and conflicting opinions. If you live to the average life expectancy it probably doesn’t make any difference when you start – if you start early you will get less over a longer time, and if you start later you get more for a shorter time. Speak with your advisor before you decide – this is an important decision that too many people do not consider seriously enough. It not only affects you, but also your lower earning spouse.
Income Limits for 2025
Income limits and penalties. If you are 65 this year you have not yet reached your Full Retirement Age (FRA). So if you are still working while receiving Social Security benefits, there are income limits. If you exceed these limits, part of your benefits may be withheld, although they will eventually be paid back. At age 65 the limit is $21,240 per year (or about $1,770 per month), and the penalty is that for every $2 you earn over this limit, $1 will be withheld from your Social Security benefits. In 2 years, when you hit the FRA, limit is higher, and only $1 for every $3 over that is withheld. Once you hit FRA, no penalty applies regardless of your income.
When to Start Receiving Retirement Benefits from the Social Security Administration is very helpful, and Topretirements has many articles on the topic in our Blog’s Social Security category. Here’s where you can apply for Social Security.
5. Get your finances in order. You absolutely have to know if you are going to have enough money for a comfortable retirement. Start with a budget – your retirement income from all sources minus your expected expenses. If there is a shortfall you still have options. You can delay retirement, downsize to a smaller house, get a part-time job, move to a cheaper town or state, or reduce your lifestyle. But you need to know all this and have a plan before you retire. The budget worksheet in csv format contains most of the items you need to consider when developing a budget – just input them into a spreadsheet, by hand or on a computer.contains most of the items you need to consider when developing a budget – just input them into a spreadsheet, by hand or on a computer.
“Retirement is a do-over on life. Grab it!”
John Brady
6. Decide where you are going to retire
We hope you visit Topretirements to help find your best place to retire (which might be where you live now!). Even if you are not going to retire for a few more years, it is not too early to start planning. Use our “Are You Ready for Retirement Quiz” to help get ready. Our “Best Places” feature has reviews of almost 5,000 cities and communities from a retirement standpoint. Use our Community Explorer Tool to help identify communities by type of units, amenities, lifestyle, and State. Then start visiting different places that might be of interest – either on special trips or tacked on to your other travel. Take advantage of “Stay and Play” packages – there is no better way to evaluate a place than to stay there for a while.
7. Write out your bucket list
Take active charge of your own retirement – this is your chance to do anything you want. But it won’t happen unless you spend some time planning. Write out the list of things you want to accomplish during the rest of your life, and discuss with your spouse, significant other, or family. Retirement should be more exciting than watching TV or puttering around in the garage. Our “Retirement Bucket List” article can definitely help.
Retirement is another chance on life!
Get ready, if you do the right planning and thinking, this could be the best chapter of your life!
For further reference:
10 More Checklist Items for the Retiring Baby Boomer
7 Must-Do Items Now That You Are Retired
Didn’t Sign up for Medicare Part D – Double Ouch!
“Now That You’re 65, Wow, Time to Get Started with Medicare”.
Social Security Website
Medicare
How to Solve the Healthcare Insurance Puzzle if You Retire Before Age 65
Consumer Reports info on Medigap Policies
What Else Should You Know, Now That You Are 65?
Please use the Comments section below to tell us what we missed, or add your thoughts and observations.
Comments on "Turning 65: Here Are the 7 Critical Things You Need to Do Now"
LS says:
Be aware that there is a late enrollment penalty for Part B Medicare if you are age 65, no longer covered by your own health plan but are covered by your spouse's health plan. You can avoid this late penalty by providing evidence to Medicare of your coverage under your spouse's health plan. There is a form you will need to furnish to your spouse's employer to have them certify your dates of coverage under their health plan. When your spouse is no longer covered by an employer health plan, you will then be able to enroll in Part B without a late enrollment penalty.
Admin says:
RE: Medicare and Medicare Advantage, moving back and forth. It is complicated. Some states including CT allow movement back and forth from MA plans to Medigap plans without underwriting or medical rating or age rating.
The other states have all sorts of rules that protect insurance companies from adverse selection. When turning 65, the Initial enrollment period allows entry to Medigap plans without underwriting in all states, but moving from plan to plan after that can be fraught with underwriting problems and increased premiums because of age.
Special enrollment periods can occur which allow movement and Guarantee Issue pricing but still restrictive in some states. Ma plans do not have rating or underwriting mechanisms and readily accept members during special enrollment periods,
Special enrollment periods Include, leaving employer plans, moving to new service areas, or a variety of losing coverage situations.
Tom Cretella, CLU at Cretella and Belowsky. https://www.cretellabelowsky.com/