You become eligible for Medicare by accruing retirement credits. When you get paid throughout your working career, you may be quite annoyed when you see the FICA deduction. This can seem like a nuisance, but the good news is that you are earning retirement credits when you pay this tax.
In 2019 you gain one retirement credit for every $1220 in taxable income that you earn. It is possible to earn up to four retirement credits per year. Once you have 40 retirement credits in the bank as it were, you will qualify for Medicare.
The age of eligibility for your full Medicare benefit depends on the year of your birth. If you were born between 1943 and 1954, you can start to draw your full benefit when you celebrate your 66th birthday.
There is then a two month per year graduation with regard to the age of full eligibility. In other words, someone born in 1955 would become eligible two months after his or her 66th birthday. If you were born in 1956, you will become eligible when you are 66 years and four months old.
This graduation continues through to 1960, when the age of eligibility is 67. Those born in 1960 and after become eligible at the age of 67, and there is no further graduation.
It is possible to submit your application early and accept a reduced benefit. You can go this route when you are as young as 62 years of age.
The amount of the reduction would be somewhere between 25 percent and 30 percent if you are not yet receiving your Social Security benefit.
On the other side of the spectrum, you can choose to delay the submission of your Social Security application until you are as old as 70. Your benefit would increase by eight percent per year if you so this, but since it stops when you are 70, there is no reason for any further delay.
Attend a Free Seminar
There are some fantastic opportunities coming up in the near future if you would like to learn more about retirement planning, other elder law matters, and estate planning strategies. Our firm is offering a series of seminars, and we urge you to attend the session that fits into your schedule.
We want everyone that is interested to sit in on a seminar without hesitation, so there is absolutely no admission charge at all. This is a deal that is hard to beat, but we do ask people to register in advance, because we have to know how many participants to expect in advance.
You can visit our seminar page to see the schedule and obtain detailed registration information.
Retirement Planning Consultation
If you want to be comprehensively prepared for the future, you should look ahead toward your active retirement years and the twilight years that will follow. When you take all the right steps, you can enjoy quality time with your family, cross things off your bucket list, and feel a sense of financial security during the latter stages of your life.
We can help if you would like to put a retirement plan in place. Our firm offers free consultations, and you can send us a message through this page to set up an appointment: Mount Clemens Elder Law Attorneys. You can alternately give us a call at 586-493-7661.