I have insurance through my employer's group health plan (which includes prescription drugs) right now. To avoid any penalty I simply have to show proof of credible coverage, don't I? I had planned on signing up for a Medicare supplement and a Part D plan to take effect after I retire.You can apply for SS and Medicare (Parts A, B & D) three months before the first day of the month you turn the appropriate age. That would be 65 for Medicare and 66 or later for SS. If you are financially able and expect to live a long life, you can delay receiving SS up until age 70 and receive an increased benefit of 8% per year. If you have not already signed up for Medicare part D, I'm afraid you will be penalized for not signing up during the allowable window when you turned 65. You will most likely also want to buy a Medicare supplement policy, like part G. Talk to a reputable insurance agent--there are scads of them now well versed in Medicare.
Thanks for the advice, but I won't be retiring until next year -- when I reach my full retirement age of 66.If you start taking SSA before you full retirement age, you have to be careful about how much you will earn during the last three months of your employment. If it goes over a certain amount, the IRS will tax you pretty heavily on the excess.
I started SSA a few months before I retired on the understanding that I would change over to an on-call part-time consultant and not work that much. Well, my company called me a lot more than originally planned and I was taxed at a rate of 50% on the excess.
Thanks for the advice, but I won't be retiring until next year -- when I reach my full retirement age of 66.
By the way, Butterfly, I took your advice. I called Social Security/Medicare at their 800 number and they told me that I can apply for Social Security and Medicare Part B/Part D three months before I retire. I plan on retiring in late September, and will set an "effective date" of October 1 for SS and Medicare.
I have insurance through my employer's group health plan (which includes prescription drugs) right now. To avoid any penalty I simply have to show proof of credible coverage, don't I? I had planned on signing up for a Medicare supplement and a Part D plan to take effect after I retire.