The Medicare & Social Security Timing Trap Nobody Explains

Medicare at 65, Social Security at 67… or 70? What You Need to Know

Many retirees are confused about when to start Social Security and Medicare.

Here’s the key difference:

• Medicare eligibility still begins at 65.
• Full Retirement Age for Social Security is now 66–67 for most people.
• Benefits increase each year you delay up to age 70.

Yes — you can take Medicare at 65 and delay Social Security. They are separate decisions. But there are three important logistics to understand.

1. You Must Enroll in Medicare Manually

If you delay Social Security, you will not be automatically enrolled in Medicare.

You must sign up during your 7-month Initial Enrollment Period around your 65th birthday and select “Medicare Only.” Missing this window without creditable coverage can lead to permanent penalties.

2. Expect a Quarterly Bill

If you aren’t receiving Social Security yet, your Part B premiums won’t be deducted automatically. Instead, you’ll receive a quarterly bill.

In 2026, the standard Part B premium is $202.90 per month. Higher earners may also face IRMAA surcharges, which can add hundreds of dollars per month depending on income. Over a long retirement, poor tax planning can cost tens of thousands in extra premiums.

3. The HSA Trap

Once you enroll in any part of Medicare, you can no longer contribute to a Health Savings Account. Continuing to do so can trigger IRS penalties. Most people stop HSA contributions about six months before enrolling.

When Should You Take Social Security?

You can claim as early as 62, but doing so permanently reduces your benefit. Waiting until full retirement age gives you 100% of your earned benefit. Delaying until 70 increases your benefit by about 8% per year after full retirement age — resulting in roughly 24% more than at 67.

If you live into your 80s or beyond, delaying often results in more total lifetime income. It also increases the survivor benefit for a spouse and leads to larger inflation adjustments over time.

Funding the Gap

If you delay Social Security, you’ll need to use savings to cover income in the meantime. For larger portfolios, this can be done strategically by combining bonds, cash reserves, and growth investments — while carefully managing withdrawals to reduce taxes and avoid IRMAA surcharges.

For smaller portfolios, claiming earlier may make more sense.

The Bottom Line

Medicare timing, Social Security timing, tax planning, and portfolio withdrawals are all connected. A 30% reduction from claiming early — or years of IRMAA surcharges — can significantly impact long-term retirement income.

These decisions shouldn’t be made in isolation. Modeling them 5–10 years before retirement can make a substantial difference.