Millions of older Americans depend on Medicare to make healthcare affordable. Even so, Medicare brings its own costs that can stretch retirement budgets, from deductibles to monthly premiums. Most seniors look forward to signing up when they turn 65, but that milestone raises an important question: should you claim Social Security at the same time?
You’re eligible for both at 65, yet claiming them together isn’t always the smartest move. Understanding how these programs work separately can save you thousands in lifetime benefits.
How Social Security Works and Why Waiting Pays Off
Social Security calculates your monthly retirement benefit using your earnings history, but your filing age plays an equally critical role in determining what you receive each month.
Claiming before full retirement age (FRA) permanently reduces your benefit. For anyone born in 1960 or later, FRA is 67. If you were born in 1960 and file at 62, your monthly payment drops by a full 30%, leaving you with only 70% of your primary insurance amount for the rest of your life.
Filing for Social Security while enrolling in Medicare could lock in that reduction permanently. On the flip side, delaying past your FRA increases your benefit by 8% for each year you wait, up to age 70. That’s a 24% total increase if you hold out the full three years.
2026 Medicare Costs and IRMAA Thresholds
Medicare expenses climbed again for 2026, and beneficiaries need to budget accordingly. The standard Part B premium now sits at $202.90 per month, while the annual deductible rose to $283. If you land in the hospital, expect to pay a $1,736 deductible per benefit period under Part A.
Higher earners face an extra layer of costs through the Income-Related Monthly Adjustment Amount (IRMAA). These surcharges apply to individuals with modified adjusted gross income above $109,000 or joint filers above $218,000. At the top income brackets, total monthly Part B premiums can reach $689.90.
These premium increases matter more in 2026 than in past years. The Medicare Part B hike will consume more than 25% of this year’s 2.8% Social Security cost-of-living adjustment, leaving beneficiaries with less purchasing power even after their COLA bump. For those still working and weighing when to file, that squeeze reinforces the value of delaying Social Security to maximize the benefit before Medicare costs take their bite.
The HSA Trap and Earnings Test
If you’re still employed at 65, pay close attention to how Medicare affects Health Savings Accounts. Once you enroll in any part of Medicare (including the premium-free Part A), you lose the ability to contribute to an HSA. To preserve those tax-advantaged savings, you must delay all Medicare enrollment, provided your employer coverage qualifies as creditable.
This rule catches many people off guard. Even if you only sign up for Part A thinking it’s “free,” you’ve shut the door on further HSA contributions. If building that HSA balance remains a priority, confirm your employer plan meets Medicare’s creditable coverage standards before making any enrollment moves.
Additionally, collecting benefits before FRA while working subjects you to the retirement earnings test. For 2026, the limit stands at $24,480. Social Security withholds $1 in benefits for every $2 you earn above that threshold. While you’ll eventually recoup those withheld dollars through an adjusted benefit at FRA, it creates a cash flow squeeze in the meantime.
How to Sign Up for Medicare Alone
What confuses people about signing up for Medicare is that you do it through the Social Security Administration’s website. You handle the process via your “my Social Security” account, where COLA notices and other official correspondence now land digitally.
The system gives you the option to enroll just in Medicare without filing for Social Security. If you’re still working at 65 with coverage through an employer, you can elect Part A alone as secondary insurance at no cost. Just understand that if you sign up for Medicare without claiming Social Security, you’ll pay your Part B premiums directly through automatic payments or billing.
Once you do start Social Security, Part B premiums come straight out of your monthly benefit automatically. But if you don’t need the Social Security income yet, holding off and handling Medicare on its own makes financial sense.
Editor’s note: The 2026 Medicare Part B premium and deductible figures have been updated to $202.90 and $283 respectively, IRMAA income thresholds now begin at $109,000 for individuals, and the earnings test limit for 2026 increased to $24,480. Additional context was added regarding the impact of Medicare premium increases on the 2.8% Social Security COLA.
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