Learn About Benefits for Age 65 and Older

Understanding Social Security and Retirement Income

Social Security is a federal insurance program that provides monthly payments to people who have worked and paid Social Security taxes during their working years. The program was created in 1935 and today supports more than 67 million Americans, with about 56 million of them age 65 and older. When you turn 65, you become eligible to receive retirement benefits based on your work history and earnings record.

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The amount of your monthly Social Security payment depends on several factors. The program calculates your benefit based on your highest 35 years of earnings. If you worked fewer than 35 years, zeros are included in the calculation, which lowers your average. Generally, people who earned more during their working years and worked for more years receive larger monthly payments. As of 2024, the average monthly Social Security payment for a retired worker is approximately $1,907, though this varies significantly based on individual work histories.

You have flexibility in when you start receiving Social Security retirement benefits. You can begin taking payments at age 62, but your monthly amount will be permanently reduced—roughly 30% less than if you waited until your full retirement age. Your full retirement age depends on your birth year. For people born between 1943 and 1954, full retirement age is 66. For those born in 1960 or later, it is 67. If you delay claiming benefits past your full retirement age, your monthly payment increases by approximately 8% for each year you wait, up until age 70. This means someone who waits until age 70 could receive up to 24% more monthly income compared to claiming at full retirement age.

Before you begin receiving benefits, Social Security sends you an earnings record statement that shows your work history and estimated benefit amounts at different claiming ages. You can review this information to understand how your past earnings affect your future payments. Some people continue working while receiving Social Security. If you are under full retirement age and earn more than a certain amount—$23,400 in 2024—Social Security temporarily reduces your benefit by $1 for every $2 you earn above that limit. Once you reach full retirement age, there is no limit on how much you can earn without affecting your benefits.

Practical Takeaway: Gather your Social Security statement and note your full retirement age. Compare the estimated monthly payments at ages 62, 67 or 68, and 70 to see how your claiming age affects your lifetime retirement income. Consider your health, family longevity patterns, and other income sources when deciding when to start benefits.

Navigating Medicare Health Insurance Options

Medicare is a federal health insurance program primarily for people age 65 and older, regardless of income or health status. Nearly 47 million people are enrolled in Medicare today. The program has several distinct parts, and understanding each one helps you make informed decisions about your coverage. Unlike private health insurance, Medicare is not means-tested—you do not need to have low income to join, and your benefits are the same regardless of income level.

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Medicare Part A covers hospital services, including inpatient hospital stays, skilled nursing facility care, hospice care, and home health services. Part A is generally free because you (or your spouse) paid Medicare payroll taxes while working. However, you pay a deductible when you use hospital services. In 2024, the Part A hospital deductible is $1,632 per benefit period. Most people do not pay a premium for Part A, though some individuals who did not work long enough in Medicare-covered jobs may pay a monthly premium of $278 to $505.

Medicare Part B covers doctor visits, outpatient care, medical equipment, and preventive services. Unlike Part A, Part B requires a monthly premium. In 2024, the standard Part B premium is $174.70 per month for new beneficiaries, though higher-income individuals pay more through an income-related adjustment. Part B also has an annual deductible of $240, and you typically pay 20% of the cost for most services after you meet the deductible. Part B is optional, but if you do not sign up when you first become eligible at 65, you may face a permanent penalty increase.

Medicare Part D covers prescription drugs through private insurance plans that contract with Medicare. Part D is also optional, but like Part B, delayed enrollment can result in permanent penalty fees. Different Part D plans cover different drugs at different costs, so comparing plans each year during the open enrollment period (October 15 to December 7) is important. Part D has a coverage gap sometimes called the "donut hole," where you pay more out-of-pocket for drugs after you and your insurance plan have spent a certain amount on covered drugs.

Many people also choose supplemental coverage, often called Medigap, which is private insurance designed to work alongside Original Medicare (Parts A and B). Medigap policies help pay for costs that Medicare does not cover, such as deductibles, copayments, and coinsurance. There are ten standardized Medigap plans, labeled A through N, each offering different coverage levels. Alternatively, some people choose Medicare Advantage (Part C), which is an all-in-one alternative to Original Medicare offered by private insurers. Medicare Advantage plans typically include prescription drug coverage and often offer additional benefits like dental or vision, but you may have network restrictions and higher out-of-pocket costs for certain services.

Practical Takeaway: Visit Medicare.gov before your 65th birthday to understand your coverage options. Compare Original Medicare with a Medigap plan against Medicare Advantage plans in your area. Review your Part D drug plan annually to ensure it still covers your medications at the lowest cost. Enroll during the appropriate enrollment periods to avoid penalties.

Exploring Senior Housing and Living Arrangements

Housing decisions after age 65 are deeply personal and depend on your health, finances, social needs, and preferences. Many older adults have multiple options to consider, each with different costs, benefits, and levels of support. Understanding these options helps you make a choice that aligns with your independence goals and care needs.

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Aging in place—staying in your current home—is the preference of most older adults. This option allows you to maintain independence and live in a familiar environment with your memories and community connections. However, aging in place sometimes requires modifications to your home, such as installing grab bars in bathrooms, improving lighting, removing tripping hazards, or adding accessibility features like ramps or widened doorways. Some communities offer grant programs or low-interest loans to help pay for these modifications. Your local area agency on aging can provide information about home modification resources and programs in your region.

If you need help with daily activities but do not require round-the-clock medical care, assisted living facilities may be an option. These communities provide housing, meals, housekeeping, medication management, and help with activities like bathing and dressing. Assisted living is private pay, meaning Medicare and Medicaid typically do not cover it, though some states offer limited Medicaid coverage. Costs vary widely by location, ranging from $2,000 to $6,000 per month or more. Staff-to-resident ratios and regulations vary by state, so it is important to visit facilities and ask detailed questions about staffing, training, and services.

Continuing care retirement communities (CCRCs) offer a continuum of care from independent living to skilled nursing in one location. You typically pay an entrance fee—sometimes $100,000 or more—plus monthly fees. The advantage is that if your care needs increase, you can move to higher levels of care within the same community. However, these are expensive and require significant upfront investment.

Nursing facilities, also called skilled nursing facilities, provide 24-hour medical and nursing care for people with complex health needs or severe disabilities. Medicare Part A covers some nursing facility care after a hospital stay (up to 100 days per benefit period), though you pay a copay after day 20. For long-term nursing care not covered by Medicare, Medicaid may pay if you meet income and asset limits, or you pay privately. Average nursing home costs in the United States exceed $100,000 per year for a semi-private room.

Less formal options include shared housing, where you live with one or more unrelated people to share costs and provide companionship, and accessory dwelling units (ADUs), where a small separate housing unit is built on a single-family property. Some older adults purchase or rent ADUs or move into a family member's home. These arrangements offer flexibility and lower costs but require clear agreements about responsibilities, finances, and expectations.

Many communities also offer programs to support aging in place or independent living. Adult day programs provide structured activities, meals