Two of the biggest decisions you have heading into retirement are when to claim Social Security retirement, and how to set up your Medicare coverage. With a little preparation, making the right choices is easy.
Take extra care when it comes to starting Social Security retirement, especially if you're thinking about claiming at 62, since you could be leaving a lot of potential income on the table. Medicare choices can be changed every year during open enrollment, but it's still important to learn the basics so your selection doesn't turn into an inconvenience the following year. Medicare plans automatically renew unless you make a change during open enrollment.
It is one of the most consequential decisions in retirement: the age you choose changes your monthly check for the rest of your life. Assuming a full retirement age of 67 (for anyone born in 1960 or later):
70%
Claim at 62
The earliest you can start, but your benefit is permanently reduced by about 30%.
100%
Claim at 67
Your full retirement age: you receive your full benefit.
124%
Wait until 70
About 24% more than your full benefit, and roughly 77% more per month than claiming at 62.
If you claim before full retirement age and keep working, part of your benefit may be temporarily withheld: in 2026, $1 for every $2 you earn above $24,480. The good news: those dollars are not lost. When you reach full retirement age, Social Security recalculates your benefit and effectively pays that money back over time, and from that point on, the earnings limit disappears entirely.
Over a long retirement, the gap between claiming early and claiming late adds up, often to well over $100,000 in lifetime benefits, depending on your benefit amount and how long you live. The right choice depends on your health, your other income, your savings, and (if you are married) your spouse. There is no one-size-fits-all answer, but there is a right answer for your situation.
Source: U.S. Social Security Administration (ssa.gov). Figures assume a full retirement age of 67 and reflect current Social Security rules, which are subject to change. Examples are for educational purposes and are not a projection of your benefits.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users: 1-877-486-2048), 24 hours a day / 7 days a week, to get information on all of your options.
Not connected with or endorsed by the U.S. Government or the federal Medicare program.
Medicare and insurance products are offered through David J. Schwartz as a licensed insurance agent, separately from and not through LPL Financial or Independent Advisor Alliance. This page is educational and is not an offer of any specific plan or benefit.
What Social Security Has to Do With Medicare
Social Security and Medicare are closely linked, and how you handle one affects the other. When and how you sign up depends a great deal on whether you are already taking Social Security benefits.
Before you turn 65
If you apply to start Social Security (or Railroad Retirement Board) benefits at least 4 months before you turn 65, you will automatically get Part A (Hospital Insurance) and Part B (Medical Insurance) when you turn 65.
You will still need to make important decisions about how you get your coverage, including adding drug coverage. If you want Medicare at 65 but are not planning to take retirement benefits yet, you will need to sign up for Medicare yourself.
After you turn 65
You will need to contact Social Security when you are ready to sign up for Medicare.
Depending on your work situation and whether you have health coverage through an employer, you may want to wait to sign up for Medicare. This is a good moment to talk it through so you do not miss a deadline or pay a penalty.
Getting Started With Medicare
Start with the basics. Medicare comes in parts, and understanding them is the first step toward a confident decision:
Part A Hospital insurance: inpatient care, skilled nursing, and hospice.
Part B Medical insurance: doctor visits, outpatient care, and preventive services.
Part C Medicare Advantage: private plans that combine Part A and Part B, often with added coverage.
Part D Prescription drug coverage.
A basic understanding of these parts will help you choose which type of plan you use to receive your health care benefits. Original Medicare (Parts A and B) covers a great deal, but not everything, and it has no annual out-of-pocket limit. That is why it pays to understand how the pieces fit together before you enroll.
Preview your options. There are three main ways to get your Medicare coverage: Original Medicare, Medicare Advantage, and Medigap (Medicare Supplement) plans. Which one fits depends on your doctors, your medications, your budget, and how much you travel.
Choose your coverage. Once you have set up your Social Security account and applied for Part A and/or Part B, you have Original Medicare. From there you can choose to join a Medicare Advantage plan instead. Medicare Advantage companies contract with Medicare to provide a network of providers, and often offer extra benefits that Original Medicare does not. Either way, payment of your health care benefits is still made through Medicare.
Add drug coverage (Part D). You can buy standalone prescription drug coverage, or use a Medicare Advantage plan that has drug coverage built in. If you choose a Medigap policy for your health care coverage, you will most likely need to buy a separate standalone Part D plan.
Use your Medicare. When you're ready, find out how to get services and how I can help you. I've provided the link below to the official government Medicare website because I feel the information found there is critical for helping you make an informed decision. I'll be here for you if you require assistance with the basics or enrolling into a plan. Keep in mind the link below is official, and there are many copy-cat sites pretending to be official but they're not.
This link is the official government Medicare website. Be aware that many copycat sites pretend to be official but are not. When in doubt, start here or give me a call.
When Are You Eligible, and When Can You Enroll?
Most people become eligible for Medicare at age 65. If you are under 65, you generally qualify after receiving Social Security disability benefits for 24 months, and certain conditions, such as ALS (Lou Gehrig's disease), qualify you right away, without the 24-month wait.
Just as important is when you can sign up. You can enroll in or change a Medicare Advantage (MAPD) plan only during specific windows:
Initial Coverage Election Period: the 7-month window around your 65th birthday, covering the 3 months before, the month you turn 65, and the 3 months after.
October 15 – December 7: the Annual Enrollment Period, when anyone with Medicare can join, switch, or drop a Medicare Advantage plan for the year ahead.
January 1 – March 31: the Medicare Advantage Open Enrollment Period; if you are already enrolled in an MAPD plan, you can switch to another plan or return to Original Medicare once during this window.
Miss a window and you may have to wait, so it helps to plan ahead. Not sure which period applies to you? That is a perfect reason to give me a call.
Common Questions
Straight answers to common questions about Social Security and Medicare, each drawn from the official government source.
Social Security
How much will my Social Security benefit be?
Your benefit is based on your lifetime earnings, and the age you start changes the amount. You can see your personal estimate in a free my Social Security account at ssa.gov, which shows what you could receive at different claiming ages from 62 to 70. For context, Social Security estimates the average retired worker benefit at $2,071 a month in January 2026.
What is my full retirement age?
If you were born in 1960 or later, your full retirement age is 67. If you were born from 1955 through 1959, it falls between 66 and 67, depending on your birth year. You can start benefits as early as 62, but your monthly benefit is permanently reduced.
Can I work and collect Social Security at the same time?
Yes. If you are younger than full retirement age for all of 2026, $1 in benefits is withheld for every $2 you earn above $24,480. In the year you reach full retirement age, $1 is withheld for every $3 you earn above $65,160, counting only earnings before the month you reach it. Beginning the month you reach full retirement age, there is no earnings limit.
Is Social Security taxable?
It can be. You will pay federal income tax on part of your benefits if your combined income (half of your benefits plus your other income) is above $25,000 on an individual return or $32,000 on a joint return. You can choose to have tax withheld from your monthly payment.
Can I collect benefits based on my spouse's work record?
Often, yes. A spouse can receive up to half of the worker's full retirement age benefit. The amount is reduced if you start before your own full retirement age, and your spouse generally must have already filed for benefits.
Your Initial Enrollment Period lasts 7 months: the 3 months before the month you turn 65, that month, and the 3 months after. If you or your spouse are still working and covered by a job-based health plan from an employer with 20 or more employees, you can generally wait and sign up during an 8-month Special Enrollment Period that begins when the job or the coverage ends.
What happens if I sign up for Medicare late?
You may pay a penalty for as long as you have the coverage. For Part B, it is an extra 10% for each year you could have signed up but did not. For Part D drug coverage, it is an extra 1% for each month you went without Part D or other creditable drug coverage, if the gap lasted 63 days or more.
How much does Medicare cost in 2026?
Most people pay no premium for Part A. The standard Part B premium is $202.90 a month, with a $283 annual deductible, and the Part A hospital deductible is $1,736. If your income is above $109,000 ($218,000 on a joint return), you pay more for Part B and drug coverage. Social Security generally uses your tax return from two years earlier, so 2026 premiums are based on 2024 income.
Figures are for 2026 and change each year. Social Security and Medicare rules are subject to change. This information is educational and is not a projection of your benefits. Champion Wealth Management and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
Important Disclosures
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users: 1-877-486-2048), 24 hours a day / 7 days a week, to get information on all of your options.
Not connected with or endorsed by the U.S. Government or the federal Medicare program.
Medicare and insurance products are offered through David J. Schwartz as a licensed insurance agent, separately from and not through LPL Financial or Independent Advisor Alliance. This page is educational and is not an offer of any specific plan or benefit.
Let's find what fits your life.
Whether it is the right time to claim Social Security or which Medicare path makes sense for you, give me a call. I can help with Social Security guidance and help you enroll in a Medicare plan.
