Medicare vs Social Security

Navigating the world of retirement benefits takes time, research, and guidance for anyone trying to plan for retirement. Not only do rules and costs change annually, but program names can be confusing. 

Medicare and social security are two different programs. They are both federal, or government, programs designed generally for a retired population.

While these two programs are similar in intent, key differences exist that are important to understand while planning for retirement.

• Medicare, started in 1965, is a government health insurance program. Social security is a separate but related program that focuses on monetary benefits for retirees and the disabled.
• Each program requires some thought but the decisions behind each one are different. When thinking about social security, you’ll weigh how long you want to continue working, how many years you’ve worked, if you plan to retire before the full retirement age, and your overall financial picture. With Medicare, you’ll make decisions about the different parts of Medicare, choosing a plan that fits your personal healthcare needs.
• Age is a key factor for both programs. At 62, you can begin drawing a percentage of social security payments. Full retirement age varies according to the year born. Medicare eligibility, however, begins at 65 for everyone.    
• Age is a key factor for both programs. At 62, you can begin drawing a percentage of social security payments. Full retirement age varies according to the year born. Medicare eligibility, however, begins at 65 for everyone.

It’s never too early to plan for retirement. Even those starting out in the workforce by age 18 can create a personal retirement account to track earnings and benefits over time. Visit www.ssa.gove/myaccount to get started.

Establishing a habit of keeping personal files or documents can save time later when you’re required to submit specific personal information to enroll in Medicare or sign up for social security benefits. Online resources and tools like checklists can also prove extremely helpful for making sure you and your family are covered.

Establishing a habit of keeping personal files or documents can save time later when you’re required to submit specific personal information to enroll in Medicare or sign up for social security benefits. Online resources and tools like checklists can also prove extremely helpful for making sure you and your family are covered.

Related articles:

• Medicare basics