The $1,607 Mistake: Why Claiming Social Security Alongside Medicare at 65 Costs You

There’s a lot riding on your Social Security claiming decision in retirement. The filing age you choose, coupled with your personal wage history, will determine what monthly benefit you get.

The earliest age to sign up for Social Security is 62. But if you want your monthly checks without a reduction, you’ll have to wait until you reach full retirement age (FRA). FRA is 67 if you were born in 1960 or later.

Some Social Security recipients opt to claim benefits at 65. And there’s a reason – they want to coordinate with Medicare. But timing your Social Security claim with your Medicare enrollment could cost you.

You don’t have to sign up for both programs at once

Age 65 is when most older Americans become eligible to enroll in Medicare. If you’re still working at the time and are covered by a qualifying group health plan, you don’t have to sign up for Medicare right away. But age 65 is a common time to enroll.

You could opt to sign up for Medicare and Social Security at the same time since, as mentioned above, those benefits become available to you once you turn 62. But claiming Social Security at age 65 is a decision you might sorely regret.

At 65, you won’t be at your FRA, which means your benefits will face a roughly 13.33% reduction compared to what you’d get by waiting two years. That reduction will remain in effect for the rest of your life.

The Social Security Administration reports that the average monthly benefit among recipients aged 65 was $1,607 as of the end of 2025. But among recipients aged 67, the average benefit at the same time was $2,016.

Now it’s important to note that this data does not necessarily reflect claiming ages. Someone who collects Social Security at 65 or 67 did not necessarily file for benefits at either age.

The point, however, is that filing for Social Security in conjunction with Medicare enrollment could result in reduced benefits if you sign up for Medicare on time. And that could hurt you for the rest of your life.

Reduced benefits have consequences

Reduced Social Security benefits go beyond smaller monthly checks. A lower benefit for life also means that every time Social Security gets a cost-of-living adjustment, your raise will be smaller on a dollar basis.

Plus, reduced Social Security benefits could hurt your spouse if you’re the higher earner in your household and you pass away before they do. At that point, your spouse should be entitled to survivor benefits from Social Security equal to the monthly benefit you collected. If you shrink that benefit with an early claim, your spouse might struggle.

You should know that there’s absolutely no requirement to sign up for Social Security when you’re enrolling in Medicare. If you enroll in both, you’ll pay for Medicare Part B out of your monthly Social Security benefits. But if you’re not on Social Security, there are plenty of other easy ways to get those premiums paid.

So don’t let that be the reason you file at 65. You may find that waiting two extra years to claim Social Security results in a much better financial situation for you and your spouse in the long run.

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