Retirement Planning

What Should You Do When You Turn 65?

Reviewed by Paul McNulty, CFP®, a financial professional since 1986

Sixty-five is the birthday that tends to concentrate the mind. Medicare begins, Social Security decisions move from someday to soon, and the question of whether your savings can support the life you want becomes very real. None of these decisions needs to be made in a panic, but each rewards a little advance thought. Here are the three areas worth your attention in the year you turn 65.

Sign up for Medicare on time

Medicare has enrollment windows, and missing them can mean gaps in coverage or late-enrollment penalties that follow you for years. If you are already receiving Social Security, you may be enrolled automatically. If you are still working and covered by an employer plan, the rules are different, and the right move depends on the size of your employer and the coverage you have. The safest approach is to learn your enrollment window well before your birthday month and confirm how your current coverage fits, rather than assuming it will all sort itself out.

Decide on Social Security timing

You can claim Social Security as early as 62, but 65 is not your full retirement age, and claiming before it reduces your monthly benefit permanently. Waiting beyond full retirement age increases it, up to age 70. The right timing depends on your health, your other income sources, whether you are still working, and, if you are married, how your decision affects a spouse’s survivor benefit. This is one of the few financial decisions you cannot take back, so it deserves a careful look at your whole picture rather than a rule of thumb.

Review your retirement income plan

Turning 65 is a natural moment to step back and look at the whole plan: what you expect to spend, where income will come from and in what order, how your investments are positioned, and whether your estate documents are current. If you have been saving for decades without writing the plan down, this is the year to do it. A written plan turns a vague sense of “we’ll probably be fine” into something you can actually see, test, and adjust.

If you would like a second set of eyes on any of this, Paul offers a complimentary first conversation he calls Coffee & a Second Opinion.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.