By Russell Gloor, National Social Security Advisor at the AMAC Foundation, the non-profit arm of the Association of Mature American Citizens
Dear Rusty: I’m not sure what I should sign up for in terms of Social Security: I am 64 and I am still employed full time and intend to stay employed until age 70. I am retired from the Navy and receive military retirement payments, and have military TriCare, as well as medical, dental, eye and life insurance through my employer. I don’t want to lose benefits, but I also don’t want to take Social Security until it reaches the maximum at age 70 (I think that is correct?). I will turn 65 in 4 months. Can you advise me? Signed: Uncertain Veteran
Dear Uncertain Veteran: First of all, thank you for your service to our country. From what you’ve shared, and since you’re still working full time, not claiming Social Security yet is a smart decision. If you were born in 1959 your full retirement age (FRA) is 66 years and 10 months and, if you claim SS before your full retirement age, you’ll be subject to Social Security’s earning test which would likely make you ineligible to receive SS benefits at this time.
The 2024 earnings limit (limit changes yearly) when collecting Social Security early is $22,320 and, if that is exceeded, Social Security will take away $1 in benefits for every $2 over the limit (half of what you exceed the limit by). If you significantly exceed the limit, SS will declare you temporarily ineligible to collect SS benefits until you either reach your FRA or earn less. The earnings test no longer applies after you reach your FRA. So, if you’re now employed full time and plan to stay so until age 70, and you expect at least average longevity (about 84 for someone your current age), delaying until age 70 to claim Social Security is how to get your maximum Social Security benefit.
As for your healthcare coverage as a veteran: TriCare requires you to enroll in Medicare Part A (inpatient hospitalization coverage) and Part B (coverage for outpatient services) at age 65, but you do not need to take Social Security when you enroll in Medicare. You must, however, enroll in Medicare at age 65 or you will lose your TriCare (military) healthcare coverage. You could choose to delay enrolling in Medicare at 65 because you have “creditable” employer coverage, but if you do so you will lose your current TriCare coverage and need to rely solely on your employer healthcare plan. In that case, you would still be able to enroll in both Medicare and TriCare-for-Life without penalty prior to your employer coverage ending and have coverage under both programs thereafter. I suggest you contact TriCare directly at 1-866-773-0404 to discuss your personal TriCare coverage after age 65. You can also go to www.TriCare4U.com.
Whenever you enroll, Medicare will be the primary payer of your healthcare costs and TriCare will be the secondary payor. Your vision, dental, and prescription drug coverage would be through TriCare (Medicare does not cover those services) or acquired separately. Just remember, you must be enrolled in Medicare Part A and Part B to have TriCare-for-Life coverage after age 65.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website amacfoundation.org/programs/social-security-advisory or email us at ssadvisor@amacfoundation.org.
ALWAYS the very best advice for Social Security questions. Thanks for YOUR service to seniors, Russell!!
Russell please explain when you get to FRA and start collecting SS and keep working. How does that affect your future SS payments. Do they keep looking at your top 35 year income average for your future payments as long as you work full time?
Retired Army and just went completed this process about a year ago. I too work fulltime, and my company’s healthcare is expensive and not near as good Tri-care. I took the Medicare Part A and B. Tricare for life is a money saver, what Medicare Part A and B does not cover Tricare for life will. My wife is under 65 so she stays in Tricare so this gives me the privilege to pay for Medicare and Tricare. Prescriptions are covered by Tricare for life. Because you are not drawing SS you will have to pay monthly or quarterly, I believe. I went monthly auto debt out of my checking account. Also, I had to pay 3 months in advance. If you notice your ID card expires at 65, you MUST be enrolled in Medicare or prove your company is an eligible health provider when you update your ID card. I went to the airbase in Gouldsboro to do the update.