{"id":27608,"date":"2026-04-16T05:43:01","date_gmt":"2026-04-16T05:43:01","guid":{"rendered":"https:\/\/finderica.com\/?p=27608"},"modified":"2026-04-16T05:43:01","modified_gmt":"2026-04-16T05:43:01","slug":"social-security-and-medicare-decisions-that-can-cost-you-for-life","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=27608","title":{"rendered":"Social Security and Medicare Decisions That Can Cost You for Life"},"content":{"rendered":"
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Social Security and Medicare will shape your retirement more than almost any other financial decisions you\u2019ll make. The choices aren\u2019t obvious: when to claim benefits, whether to choose original Medicare vs. Medicare Advantage, how to avoid enrollment penalties that can follow you permanently. And the programs don\u2019t make them easy to navigate.<\/p>\n

Mark Miller knows this territory better than almost anyone. He\u2019s spent nearly 20 years covering Social Security and Medicare for Morningstar and The New York Times, and he\u2019s enrolled in both programs himself.<\/p>\n

He joined Boldin CEO Steve Chen on the Boldin Your Money podcast to share what he\u2019s learned, and what most people still get wrong.<\/p>\n

How Much Are Social Security and Medicare Worth in Retirement?<\/h2>\n

For most households, Social Security and Medicare are the two most valuable financial assets in retirement, worth more in combined lifetime value than the entire portfolio of many savers. A single average-wage male retiring at 65 can expect roughly $753,000 in combined lifetime Social Security and Medicare benefits, according to a 2025 Urban Institute analysis<\/a>. A woman with the same earnings history would see $843,000 due to longer life expectancy. For a couple with one average-wage earner and one low-wage earner, the combined lifetime value climbs to nearly $1.5 million.<\/p>\n

The specific numbers matter less than what they reveal. Most people think about retirement in terms of assets: the 401(k) balance, the brokerage account, the savings total. That view leaves Social Security and Medicare undervalued, even though both programs will, for many, anchor retirement income more than anything else. Miller has a different way of thinking about them.<\/p>\n

\u201cIt\u2019s really a form of insurance,\u201d he said. \u201cAnd what it\u2019s there to do is protect against the risk of lost income in retirement and to provide insurance against the risk of outliving your money.\u201d<\/p>\n

That framing carries a lot of weight when you hit the question most people stress about first: when to claim Social Security.<\/p>\n

When Should You Claim Social Security?<\/h2>\n

For most people, the best age to claim Social Security is 70. Delayed retirement credits<\/a> build at 8% per year from full retirement age through 70, giving you a consistent, inflation-adjusted increase. There\u2019s no financial benefit to waiting past 70.<\/p>\n

Full retirement age is 67 for most people now, which sounds like the finish line but isn\u2019t. It\u2019s the age at which you receive 100% of your earned benefit, not the maximum.<\/p>\n

Miller suggests claiming later, and he\u2019s especially firm on this for married couples. The math on delay for couples is even more compelling because one spouse is likely to live well into advanced age, and the surviving spouse would collect whichever benefit is larger.<\/p>\n

\u201cLater is generally better,\u201d Miller said, \u201cbut having said that, you should claim when you need it.\u201d<\/p>\n

Why claiming Social Security early to invest it is a mistake<\/h3>\n

He also has little patience for the argument that you should claim at 62 and invest the proceeds to beat the delayed credit rate. \u201cOK, well, show me your 8% risk-free,\u201d he likes to respond. \u201cBecause the 8% is guaranteed.\u201d<\/p>\n

It\u2019s also worth understanding what funding the delay actually looks like in practice. \u201cEither you\u2019re working, so you\u2019re buying the delay that way, or you\u2019re not working and you may be drawing down from retirement accounts\u2026 to meet living expenses,\u201d Miller said. \u201cAnd that can actually be a very valid strategy.\u201d\u00a0<\/p>\n

The point is that delaying Social Security has a real funding cost, and knowing how you\u2019ll cover expenses in the gap years is part of making the decision well. The Boldin Planner lets you model different claiming ages, project the income difference over time, and stress-test your plan against rising Medicare costs.<\/p>\n

What the 2032 Social Security Trust Fund depletion date means<\/h3>\n

Some people hear the 2032 trust fund depletion<\/a> date and decide to claim early out of fear the program might run short. Miller thinks that\u2019s a misread of what depletion actually means, and a costly mistake either way.\u00a0<\/p>\n

\u201cThese cuts would apply across the board to everybody, including you if you claimed at 62,\u201d he said. You\u2019d have locked in a smaller base and taken the reduction on top of it. \u201cSo you\u2019ve hurt yourself twice.\u201d<\/p>\n

Miller tends to think the political cost of letting benefits fall for tens of millions of voters is steep enough that Congress will act at the last minute. This scenario played out in 1983, when a deal (which introduced a tax on benefits) was reached just months before the fund would have run short.<\/p>\n

How to Avoid Medicare\u2019s Permanent Late Enrollment Penalty<\/h2>\n

If you don\u2019t enroll in Medicare Part A and Part B during the window around your 65th birthday, and you don\u2019t have qualifying employer coverage, you\u2019ll face a permanent Part B late enrollment penalty of 10% for every 12 months you waited. It never goes away.<\/p>\n

Medicare is where Miller sees the most avoidable mistakes, and most of them start there. If you\u2019re past 65 and still on employer coverage, you can delay without penalty, but when you do eventually enroll you\u2019ll need to file a form, countersigned by your employer, confirming you had creditable coverage during the gap. Miller enrolled at 67 after staying on his wife\u2019s work plan and went through exactly that process.<\/p>\n

His practical advice: start the paperwork<\/a> early. \u201cYou can put your paperwork in as early as three months ahead of the intended start date,\u201d he said. \u201cI would urge people to do that.\u201d SSA staffing has been under real pressure, and getting into the queue ahead of schedule matters more than it used to.\u00a0<\/p>\n

Once Part A and B are squared away, the next decision is the one with the most long-term consequence.<\/p>\n

Original Medicare vs. Medicare Advantage: Which One Is Better?<\/h2>\n

Original Medicare gives you access to nearly any provider that accepts Medicare, with no network restrictions. Medicare Advantage offers lower upfront costs but routes your care through private insurer networks with prior authorization requirements that can delay or deny coverage. Miller favors original Medicare, and his reasoning comes down to what happens when you actually need care.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nOriginal Medicare<\/strong><\/td>\nMedicare Advantage<\/strong><\/td>\n<\/tr>\n
Provider access<\/strong><\/td>\nAny provider that accepts Medicare, nationwide<\/td>\nNetwork-restricted; out-of-network care costs more or isn\u2019t covered<\/td>\n<\/tr>\n
Monthly costs<\/strong><\/td>\nPart B premium + Medigap + standalone Part D<\/td>\nPart B premium + plan premium (often $0)<\/td>\n<\/tr>\n
Drug coverage<\/strong><\/td>\nRequires a separate Part D plan<\/td>\nUsually bundled into the plan<\/td>\n<\/tr>\n
Prior authorization<\/strong><\/td>\nNot required<\/td>\nRequired for many procedures and specialist visits<\/td>\n<\/tr>\n
Annual out-of-pocket cap<\/strong><\/td>\nNo cap; Medigap covers most cost-sharing<\/td>\n~$6,000\u2013$8,850 in-network (2025)<\/td>\n<\/tr>\n
Supplemental (Medigap) coverage<\/strong><\/td>\nCompatible; fills gaps in cost-sharing<\/td>\nNot compatible with Medigap<\/td>\n<\/tr>\n
Plan stability<\/strong><\/td>\nCoverage rules are federally standardized<\/td>\nPlans can change premiums, networks, and benefits each year<\/td>\n<\/tr>\n
Extra benefits<\/strong><\/td>\nNone beyond Medicare\u2019s standard coverage<\/td>\nMay include dental, vision, hearing, gym membership<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

The Medicare Advantage pitch looks attractive upfront. You keep paying your Part B premium, drug coverage often comes bundled at no extra cost, and there\u2019s a built-in annual out-of-pocket ceiling, generally somewhere in the $6,000 to $7,000 range for in-network care. Some plans add gym memberships or grocery cash cards. On paper, it can look like the smarter financial move.<\/p>\n

The space between the pitch and the reality tends to show when you actually get sick. \u201cThey kind of run you through the mill to get the care approved or outright denial of care,\u201d Miller said. \u201cThe old joke is everybody loves their health insurance until they have to use it.\u201d<\/p>\n

With traditional Medicare, you\u2019ll pay more upfront: Part B, a standalone Part D drug plan, and a Medigap supplemental policy. But the coverage is predictable, the provider universe is wide, and no insurer is sitting between you and your doctor.\u00a0<\/p>\n

\u201cYou\u2019ve got predictability annually of what your healthcare expenses are going to be,\u201d Miller said. \u201cPeople absolutely love it.\u201d<\/p>\n

The hidden cost that Medicare Advantage charges every Part B enrollee<\/h3>\n

There\u2019s also a cost most enrollees don\u2019t know they\u2019re paying. Medicare Advantage plans are currently overpaid by the government by an estimated 20% compared to what it costs to deliver equivalent care through traditional Medicare.\u00a0<\/p>\n

A March 2026 Joint Economic Committee report<\/a> found that in 2025, every Part B enrollee absorbed roughly $212 in extra premiums to cover those overpayments, regardless of which type of plan they were in.<\/p>\n

Why Medicare Part B Premiums Are Projected to Double<\/h2>\n

Medicare Part B premiums are projected<\/a> to roughly double over the next decade, driven by a shift toward outpatient care delivery, rising healthcare costs broadly, and overpayments to Medicare Advantage plans that get distributed across all Part B enrollees.<\/p>\n

This hits hardest for people in IRMAA surcharge territory, the income bracket where Part B and Part D premiums increase based on your income from two years prior. Miller ran into it himself after claiming Social Security at 70 while still doing some freelance writing.\u00a0<\/p>\n

\u201cIt\u2019s a good problem to have and it\u2019s a tail-wagged dog kind of a discussion,\u201d he remarked. \u201cI don\u2019t think taxes should ever really drive these decisions, but you kind of notice it.\u201d If you\u2019re earning any wage income when Medicare starts, there\u2019s a reasonable chance you\u2019ll cross into an IRMAA bracket.<\/p>\n

What most people miss: you can appeal an IRMAA surcharge if a qualifying life event has reduced your income since the lookback period, and retirement counts as a qualifying event. The timing of any appeal needs to line up with when SSA actually receives your updated tax return, so it\u2019s worth thinking through before you file.<\/p>\n

Compare Medicare Part D Plans During Open Enrollment<\/h2>\n

Medicare Part D plans change their premiums, deductibles, and covered drug lists every year. The plan that fit your needs last year may cost more or cover less this year, and the only way to know is to shop around during open enrollment, which runs mid-October through early December.<\/p>\n

Miller changes his Part D drug plan every year and thinks far more people should. By his estimate, only about a quarter of people enrolled in Advantage or Part D plans explore their options during open enrollment, and older enrollees are even less likely to do it.<\/p>\n

His read on why the system works this way is blunt: \u201cComplexity is a feature, not a bug. I think it\u2019s built that way on purpose.\u201d Insurers offer sharp entry rates counting on the fact that most people won\u2019t come back to compare. The plans price accordingly.<\/p>\n

The Medicare plan finder at medicare.gov<\/a> is where to search. Pull up your actual drug list and run the comparison against what\u2019s available. It takes less time than most people think.<\/p>\n

Set Up a My Social Security Account and Protect Against Benefit Fraud<\/h2>\n

Setting up a My Social Security account at SSA.gov<\/a> takes about 10 minutes and protects against a fraud risk most people don\u2019t know exists. Scammers have claimed benefits under other people\u2019s Social Security numbers by creating accounts before the actual account holder does. Having an active account with your own login closes that off.<\/p>\n

It also gives you your projected benefit statement and lets you check your full wage history for errors that could affect your eventual benefit calculation. \u201cOnce you have that,\u201d Miller said, \u201cyou can download a statement anytime you want.\u201d And when Medicare enrollment comes up, you can start that process through the same site.<\/p>\n

Social Security and Medicare are likely worth more to your retirement than anything else you own, and the decisions around both are consequential. The Boldin Planner lets you run the numbers on claiming age, Medicare costs, and income sequencing so you can see how it all fits together. The clarity is worth it.<\/p>\n

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Social Security and Medicare: Your Questions Answered<\/h2>\n
\n
When is the best age to claim Social Security?<\/strong><\/strong> <\/p>\n

For most people waiting until 70 produces the highest lifetime benefit. Delayed retirement credits build at 8% per year from full retirement age through 70, and that\u2019s a guaranteed, inflation-adjusted increase. You can claim earlier if you need the income, but doing so because you\u2019re worried the program might run short isn\u2019t: any future benefit reduction would apply to everyone.<\/p>\n<\/p><\/div>\n

What is the Medicare late enrollment penalty and how do you avoid it?<\/strong><\/strong> <\/p>\n

If you miss your initial enrollment window at 65 without qualifying employer coverage, you face a permanent Part B penalty of 10% for every 12 months you waited. It doesn\u2019t phase out. To avoid it, enroll during your initial window, or if you\u2019re still working past 65, keep valid employer coverage and file the creditable coverage affidavit when you do eventually enroll.<\/p>\n<\/p><\/div>\n

What\u2019s the difference between original Medicare and Medicare Advantage?<\/strong><\/strong> <\/p>\n

Original Medicare gives you access to nearly any provider that accepts Medicare, with no network limits. You add a Medigap supplemental plan and a standalone Part D drug plan for drug coverage. Medicare Advantage bundles everything into one private plan, usually at lower upfront cost, but with network restrictions and prior authorization requirements that can block or delay care.<\/p>\n<\/p><\/div>\n

Should you compare your Medicare Part D plan every year?<\/strong><\/strong> <\/p>\n

Yes, you should compare Medicare Part D plans when you can. Plans change their drug coverage and premiums every year, and the fit between your plan and your actual prescriptions can shift without you noticing. Open enrollment runs mid-October through early December. Use the Medicare Plan Finder at medicare.gov and compare what\u2019s available.<\/p>\n<\/p><\/div>\n

Is the Social Security trust fund really going to run out?<\/strong><\/strong> <\/p>\n

The reserves are projected to run out around 2032, at which point incoming payroll taxes would cover roughly 80% of scheduled benefits. That\u2019s a potential 20% cut, not a program shutdown. Congress has fixed this before, in 1983.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Social Security and Medicare will shape your retirement more than almost any other financial decisions you\u2019ll make. The choices aren\u2019t obvious: when to claim benefits, whether to choose original Medicare vs. Medicare Advantage, how to avoid enrollment penalties that can follow you permanently. And the programs don\u2019t make them easy to navigate. Mark Miller knows<\/p>\n","protected":false},"author":2,"featured_media":27502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[348],"tags":[330,1176,189,357,899,898],"class_list":{"0":"post-27608","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-retirement","8":"tag-cost","9":"tag-decisions","10":"tag-life","11":"tag-medicare","12":"tag-security","13":"tag-social"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/27608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27608"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/27608\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/27502"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}