Do You Need to Sign Up for Medicare at 65 if You’re Still Working?

Posted By T. Lee Sherbakoff, CPA/PFS, CFP® on Oct 15, 2018


For the past four decades, age 65 marked the time when you would leave your job, start your pension, file for Social Security, and enroll in Medicare. Not anymore.

Since then, the retirement landscape has changed. Full retirement age for Social Security is 66 or 67. The traditional corporate pension has given way to the 401(k) plan, which is generally taken as a lump sum upon leaving employment at any age, rather than monthly payments beginning at age 65. Even more significant is the fact that many baby boomers are continuing to work well into their late 60s and even 70s.

The one thing that hasn’t changed is the eligibility age for Medicare. It remains 65. In fact, most people are required to sign up for Medicare at 65 or face possible penalties. Why is this? It’s because the only way this national health insurance system can work
is if everyone, the healthy and the sick, participate. It doesn’t work if everyone waits until they get sick to sign up. This is why Medicare imposes late-enrollment penalties on people who fail to enroll in Medicare when they are supposed to.

But how does this apply to those still in the workforce? Click the thumbnail image to read and download the full article and find out!