Which of the following is the most important factor when deciding how much disability income?

If you plan to continue working while receiving benefits, there are limits on how much you can earn each year between age 62 and full retirement age and still get all of your benefits.

Once you reach full retirement age, your earnings do not affect your benefits.

Reminders:

• After you reach full retirement age, we recalculate your benefit amount to give you credit for any months you did not receive a benefit because of your earnings.
• When additional earnings appear on your record, we check to see if they will increase your monthly benefit. If they do, we will send you a letter telling you your new benefit amount.
• You can apply for just Medicare at age 65 and start receiving retirement benefits later.

When you think about retirement, be sure to plan for the long term.

As you make your retirement plans, knowing the approximate amount you will receive in benefits and your life expectancy will help you reach your goals. Since Social Security first began paying monthly Social Security benefits in 1940, life expectancies have changed. The life expectancy for men reaching age 65 on April 1, 2022, has increased more than 6 years to age 84.1. For women reaching age 65 on April 1, 2022, life expectancy has increased nearly 7 years to age 86.7.

How long do you expect to live?

You must consider your family history and lifestyle when thinking about your life expectancy. If you come from a family with a long-life expectancy, you may need extra money in later years. This is particularly important if you may outlive your pensions or annuities, especially any with limits on how long they are paid.

Your life expectancy affects your retirement planning decisions. Knowing this, helps you determine whether you should start receiving your benefits at age 62, or wait until age 70 to receive a higher payment.

If you stop working, not only will you lose your paycheck, but you may also lose employer-provided health insurance. Although there are exceptions, most people will not be covered by Medicare until they reach age 65.

Your employer should be able to tell you if you will have health insurance benefits after you retire or if you are eligible for temporary continuation of health coverage. If your spouse is employed, you may be able to switch to their health insurance.

Should I apply for Medicare?

Remember, Medicare usually starts when you reach age 65.

If you decide to delay starting your benefits past age 65, be sure to go online and file for Medicare.

You will need to apply for Original Medicare (Part A and Part B) three months before you turn age 65. If you don’t sign up for Medicare Part B when you’re first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage.

Even if you have health insurance through a current or former employer or as part of your severance package, you should contact them to find out if you need to sign up for Medicare. Some health insurance plans change automatically at age 65.

Please read the general and special enrollment period information in our Medicare booklet to find out what may happen if you delay.

If you are eligible on another record, you may have additional options:

• If you qualify for benefits as a widow, widower, or surviving divorced spouse on another record, you may choose to apply for survivors benefits now and delay your retirement benefit until later.

If you delay receiving your retirement benefit until your full retirement age or later, your retirement benefit will be higher.

• If you were born before January 2, 1954, and have already reached your full retirement age, and are eligible for a spouse’s or divorced-spouse’s benefit and your own retirement benefit, you can choose to receive only the spouse’s benefit and delay receiving your retirement benefit until a later date. If your birthday is January 2, 1954, or later, the option to take only one benefit at full retirement age no longer exists. If you file for one benefit, you will be effectively filing for all retirement or spousal benefits.