Things to do when you turn 65
If you are turning 65 in the near future, it is probably a good time to find a knowledgeable Medicare agent to provide insight into some of the things to do when you turn 65.
Decide if you want to retire or keep working
In most cases, you have thought about long before you turn 65. This is a good time to go over your financial health and see if you need to keep working or if you have had enough. You may have quite a bit of savings and are ready to travel the world. On the other hand, you may truly enjoy your work and couldn’t imagine what you would do without it. That is entirely up to you.
If you are considering retirement:
Check in with Social Security and see what your benefit amount will be if you retire and look at what it will change to if you wait a year or two. You should be aware of when you will reach your full retirement age and how much higher your benefit amount will be if you wait until then to claim it.
Take advantage of available catch-up contributions to IRAs & 401ks:
Once you are over 50, you are allowed to contribute an extra $1,000 to your IRA annually. If you have a 401k, you can contribute an additional $6,000 annually. If you opted to keep working, this is an opportunity to add to your retirement savings.
Important healthcare coverage decisions:
Before a person turns 65, their IEP (initial Enrollment Period) for Medicare starts. The IEP is a seven-month window around your birthday that you can use to sign up for Medicare coverage. It includes the three months before, the month of your birthday, and three months after.
Even if you have health insurance coverage through your employment or a spouse’s, you may want to sign up for Original Medicare during your IEP. Find out when to enroll in Medicare Part A & Part B. This is a great time to enlist the advice of a licensed Medicare agent who can explain all your options.
Do you have medical coverage through yours or your spouse’s employment:
If this is the case, you should speak with the employer several months before your 65th birthday to see what their policy for Medicare eligible employees is. Once you have an answer, you should go online or contact a licensed Medicare agent and learn about the Medicare options available to you.
You should contact Social Security and confirm your eligibility for Medicare Parts A & B. Even if you decide to stay on your employer plan, you may want to at least enroll in Part A. If you qualify for free Part A coverage. Because there is a cost to enroll in Part B, You might want to wait to enroll, as long as you have coverage through employment. Be sure you will not be charged a penalty if you do decide to wait.
If you do not have health coverage through an employer or spouse:
Make sure you enroll in both Medicare Part A & Part B before the month you turn 65. This will provide enough time have your enrollment processed and get your card to you. Normally your coverage starts the first day of the month you turn 65. If your birthday is on the first day of the month, your coverage starts on the first day of the previous month.
You will need to look at all the Medicare coverage options available to you. Again, this is a great time to get help for a licensed Medicare agent. The agent should take a list of your current doctors and medications. That will make it easier for him to find the best coverage for you. There are several choices available including Medicare Advantage plans, Medicare Supplement plans and Medicare Part D( prescription drug plans). Whatever plan you choose, be sure you have credible prescription drug coverage (Part D). If you neglect to purchase Part D coverage, you may end up paying a late enrollment penalty once you decide to add this coverage.
Learn about the Medicare Part B premium
If you have an HSA and enroll in Medicare:
Once you enroll in Medicare, you are no longer eligible to contribute to your HSA. However, you can contribute to an HSA after 65 if you chose not to enroll in Medicare Part A or Part B and maintained coverage through a high deductible health plan.
Click here to learn more about HSAs
Have a complete physical exam:
Because we all get busy and tend to put things off, we can forget to take care of ourselves. This is a great time to make sure you are in top shape so you can enjoy the years to come and address any concerns with routine exams and screenings.
Make sure your legal documents are in order:
I know this doesn’t sound fun, and in most cases at 65, you are in good health, but this is a good time to get this out of the way. Once this is taken care of, you can get it off your plate and move on.
Consider making a legal will. Be sure you make any health care choices known to family members. You can also make a living will or advanced medical directive. This can save family and friends a lot of stress later on if you become ill, they will not be faced with difficult choices. It can also protect any assets you have. You should also organize your finances and have important papers filed properly so they are easy to locate should the need arise.
Remember to have fun:
Do not forget to enjoy yourself. Take that trip or go out with friends/family. You have worked hard your whole life; now it’s time to stop and smell the roses.