Turning 65 in 2025? 2 Important Things You Need to Know

Some people celebrate getting older, while others like to keep bigger birthdays under the radar. But if you're turning 65 this year, you should know that it's a pretty significant age in the context of retirement. Here are two essential things to keep in mind as you gear up for your 65th birthday.

1. You're eligible for Medicare -- but you may not want to sign up yet

Once you turn 65, you're able to enroll in Medicare. In fact, you can actually enroll a few months prior to your 65th birthday, and your coverage will kick in at 65.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

But it doesn't automatically make sense for everyone to sign up for Medicare at age 65. So it's important to weigh your choices carefully.

Once you enroll in Medicare, you'll no longer be eligible to make contributions to a health savings account (HSA). That could mean losing out on a valuable tax break.

If you intend to continue working and you have a group health plan through your job that offers good coverage, you may want to hold off on enrolling in Medicare at 65. However, do keep in mind that if you're not on a qualifying group health plan and you delay your Medicare enrollment too long, you could risk having to pay lifelong surcharges on your Part B premiums.

If you're not sure whether you'll be eligible for a special enrollment period from Medicare later on, talk to someone from Medicare to make sure you're getting the right information.

2. You can claim Social Security -- but it could pay to wait

Once you turn 62, you're eligible to start getting your Social Security benefits. And if you're turning 65 in 2025 and were therefore born in 1960, it means you're reaching your full retirement age this year. That's important, because full retirement age is when you're eligible for your complete monthly Social Security benefit without a reduction.

That said, you can lock in boosted Social Security benefits for life by delaying your claim past full retirement age. For each year you wait, up until you turn 70, your benefits grow 8%.

Delaying Social Security is something you may want to do if you're not happy with the amount of savings you've accumulated for retirement and want to compensate with larger monthly benefits. It can also be a smart choice if you expect to live a longer life.

You should also know that your work status does not affect your ability to get Social Security. Once you're at least 62, you can take benefits whether you're still holding down a job or not. And once you reach full retirement age, you can earn any amount of money without risking having benefits withheld (whereas working and collecting Social Security prior to full retirement age does put you at risk of withheld benefits if you make too much money).

Reaching the age of 65 is a big milestone. If you'll be getting there soon, take the time to read up on Medicare and Social Security so you know what to expect.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.