Medicare mistakes those turning 65 need to avoid

More Americans than ever are turning 65 this year. As this age cohort exits the job market, they have to navigate everything from retirement accounts to Social Security to Medicare.

Yahoo Finance Senior Columnist Kerry Hannon joins Wealth! to break down what those turning 65 need to know about Medicare.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino

Video Transcript

This is in this whole realm of retirement.

You know, I get all excited talking about it, but Medicare is a big deal this year and uh it is every year.

But if you're turning 65 which more Americans are turning 65 this year than ever in history, uh you need to pay attention, you need to sign up for a Medicare uh account.

Either you, you can do it three months before you turn 65 the month, you turn 65 3 months after.

But if you miss that sign up window, you can be hit with penalties that impact you for the rest of your life.

I mean, this is significant, these penalties for late uh access, late enrollment in Medicare.

Now, there are exceptions if you are currently employed, if pe a lot of people are working past 65.

So if you're currently in employed and an active employee employee and covered by an employee, an employer plan, you don't have to worry about this right now.

Uh, you'll need to show proof that you were getting uh insurance during this time through your employer or if you're covered by your spouse's, uh employer as well, but it's super complicated and confusing and I think everyone needs to sort of uh pay attention there.

Other caveats along the way, the most important thing is sign up for Medicare at 65 for most people.

And secondly, you're gonna need to make that decision.

Do you want Medicare traditional Medicare or Medicare advantage?

And more than 50% of Americans are heading into the Medicare Advantage plans.

There's big differences between these plans.

So you need to do your homework.

This is super important and it, it, it really hits your, your pocketbook for sure.

A a and just, I mean, as always, Carrie, you bring us such great information.

Uh A lot of us I think are gonna move to set up our social security accounts after this segment today.

So thank you so much for taking the time for explaining the Medicare piece as well.

We appreciate you.

Have a great weekend, Carrie.

Thanks so much.

Thanks Madison.