If you're turning 67 in 2024, you may be of the mindset that it's just another birthday. But actually, 67 is a really important age in the context of retirement planning. Here are a few key things to be aware of if your 67th birthday is arriving in the new year.
1. You'll be eligible for your full Social Security benefit
If you're turning 67 in 2024 and were therefore born in 1957, it means that by then, you'll be past full retirement age (FRA) for Social Security purposes. FRA is 66 and six months for people born in 1957. So if you decide to claim benefits in 2024, you'll be eligible for those benefits in full without a reduction. In fact, you'll actually be looking at a boosted benefit because you'll be filing after your precise FRA.
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2. Delaying Social Security until age 70 could be a smart move
The longer you wait to file for Social Security, up until age 70, the more your monthly benefit will be worth. Even though you can get your full monthly benefit next year, you may want to contemplate a filing at age 70 instead if you're not so confident in the amount of savings you're bringing with you into retirement.
Furthermore, if you're still working, it especially pays to let your Social Security benefit grow if your paycheck allows you to cover your expenses. You never know whether you might end up living a lot longer than expected. And while a longer life is a good thing, it has the potential to drain your savings. So the more monthly Social Security income you can set yourself up with, the better off you might be financially as you age.
3. You'll need to sign up for Medicare fairly quickly if you retire and lose your employer health insurance
Medicare eligibility begins at age 65. Your initial window to enroll starts three months before the month of your 65th birthday and ends three months after that month.
If you don't sign up for Medicare on time, you risk a lifelong surcharge on your Part B premiums. However, that penalty is waived if you're still covered by a qualifying group health plan at the time of your initial enrollment window.
If you're turning 67 in 2024 and are still covered by a group health plan at present, you don't have to worry about Medicare surcharges. But if you're planning to retire in 2024 and give up your group health coverage, then you'll need to look into Medicare enrollment pretty quickly.
The good news is that you get an eight-month special enrollment period in this situation that begins the month after your group health coverage ends. But if retiring means losing that coverage, the reality is that you really don't want to go eight months without insurance anyway. You could end up facing catastrophic medical bills in the absence of having coverage.
Turning 67 is a milestone worth celebrating. But keep these points in mind as you're getting ready to cut that birthday cake.
