Age 65 is pretty exciting in the context of retirement. And it may or may not mark the end of a rewarding career for you.
If you're turning 65 in 2026, there are certain decisions you may have to make in the context of retirement planning. Here are three key things you need to know as that big birthday approaches.
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1. You can sign up for Medicare
Once you turn 65, you're eligible to get health coverage through Medicare. In fact, you can actually sign up for Medicare a bit ahead of your 65th birthday to ensure that you have that coverage in place.
Your initial Medicare enrollment window actually spans three months. It begins three months ahead of the month you turn 65 and ends three months later. If you sign up within the three-month period after turning 65, you'll be eligible for retroactive coverage dating back to your 65th birthday.
2. You may want to wait on Medicare if you have employer coverage
While Medicare coverage is generally an option once you turn 65, you may not want to sign up during your initial enrollment window for two reasons. First, it may be that you have great group health coverage through your job. In that case, coverage under Medicare may be more expensive and less comprehensive.
Also, once you enroll in Medicare, you're no longer eligible to participate in a health savings account (HSA). If you enjoy funding your HSA for the tax savings involved, that's something to consider.
Now, you should know that failing to enroll in Medicare on time could leave you with lifelong surcharges on your Part B premiums. However, if you have qualifying group health coverage through your job, you'll generally get a special enrollment window to sign up for Medicare once you're no longer covered by that plan. So, as long as you pay close attention to your timing, you can delay your Medicare enrollment without getting stuck paying more for coverage.
3. You can file for Social Security -- but you may not want to
Once you turn 62, you can sign up for Social Security at any time. So, clearly, at age 65, you're eligible to collect those monthly benefits.
However, if you'll be turning 65 in 2026, your full retirement age for Social Security doesn't arrive until 67. If you sign up for benefits at 65, you'll reduce them on a permanent basis by about 13.34%. That reduction could become a problem if you don't have a lot of other retirement income to rely on.
Now, you may be wondering whether you're able to delay your Social Security claim and still enroll in Medicare. And the answer is yes.
Although Social Security and Medicare are related, they're two separate programs. You do not have to sign up for Social Security benefits at 65 if you aren't ready for them.
People who are on Social Security and Medicare at the same time have their Part B premiums deducted from their monthly benefits automatically. If you sign up for Medicare alone, you'll need to arrange for another way to get those premiums paid. But you shouldn't sign up for Social Security before you need to and slash your benefits at the same time for the express purpose of having a slightly easier way to pay for Part B.
Turning 65 is a big milestone, one you absolutely deserve to celebrate. Keep these key points about Social Security and Medicare in mind if your 65th birthday is coming up in 2026. Knowing how to manage enrollment in each program could help you make smart decisions for your retirement.
