By Quentin Fottrell
‘I plan to retire at the end of my 70th year and transition to Medicare’
“I plan to continue working until the end of the tax year – about 10 months after my 70th birthday.” (Photo subject is a model.)
Dear Quentin,
I’ve been planning to wait until 70 to begin collecting Social Security and retire ime. However, due to some unforeseen circumstances, I plan to continue working until the end of the tax year – about 10 months after my 70th birthday.
If I do that, how would it affect my Social Security benefit? I’m in my peak earning years, so I’m wondering whether those additional earnings could increase my benefit.
Given that I plan to retire at the end of the year, I intend to transition from my employer’s health insurance to Medicare and begin collecting my Social Security retirement benefits.
Because my income will drop significantly after I retire, I’m hoping I won’t have to pay the higher Medicare Part B premium (IRMAA) that would otherwise be based on my income from prior years.
Can IRMAA be adjusted because of retirement? If so, what steps do I need to take? Is there anything else I should be aware of when coordinating my retirement, Medicare enrollment, and Social Security benefits?
Retiring After 70
Related: ‘I claimed Social Security at 62’: At 76, I’m working at Walmart. Why do I still owe payroll taxes?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
If you do not claim your Social Security benefits at 70, whether you are working or not, you will lose the money you were due.
Dear Retiring,
I have good news and bad news. Let’s start with the good news.
Yes. If this is one of your highest-earning years, it could increase your Social Security benefit because the Social Security Administration automatically recalculates benefits whenever a new year’s earnings replace one of your previous 35 highest-earning years. However, there is no Social Security benefit to delaying your retirement benefit beyond 70.
Here’s more good news: Social Security automatically reviews your earnings each year. There are advantages to taking Social Security at 70. Delaying beyond your full retirement age (FRA) of 67 boosts monthly benefits by roughly 8%, resulting in monthly payments up to 30% higher than at FRA.
Your Social Security benefit is based on the 35 years when your earnings were highest. Depending on your other income in retirement, your Social Security benefits may be taxable. Claiming Social Security doesn’t push someone into a higher tax bracket nearly as often as people would have you believe.
And now for the bad news: If you don’t claim by 70, you permanently forgo any monthly benefits you could have received after turning 70 because delayed retirement credits stop at that age. Social Security generally will not pay retroactive retirement benefits for those months you continue to work after 70.
Apply for benefits up to four months before your 70th birthday to avoid processing delays. Social Security benefits are paid one month in arrears. Your payment date depends on your birth date, so your first payment will generally arrive the month after your first month of entitlement, regardless of whether your birthday is on, say, Oct. 1 or Oct. 31.
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Social Security rules
In 2026, annual income of $184,500 is the maximum amount applied to the Social Security payroll tax. Income above this amount is not taxed for Social Security, but does not count toward increasing your future benefits. So even if you earned $300,000 a year in your last five years, only that maximum applies.
For people worried whether they worked enough: There is no maximum income that prevents people from qualifying for Social Security. To qualify, they merely need to earn enough work credits over their lifetime – typically 40 credits, which equates to around 10 years of work. Eligibility is based on your work history, not how much money people make.
However, if a person starts collecting Social Security before their full retirement age and continues working, there are temporary earnings limits. In 2026, if they are under their full retirement age for the entire year, they can earn up to $24,480 before their monthly benefits are temporarily reduced.
If they reach their full retirement age during 2026, they can earn up to $65,160 a year before the month they reach full retirement age before those reductions apply. Once they reach their full retirement age, they can earn as much as they want without any reduction in their Social Security benefits.
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Medicare rules
If you’re already receiving Social Security, Medicare enrollment is usually automatic. If you have delayed claiming while working, you will generally need to enroll yourself when your employer coverage ends to avoid late-enrollment penalties. If your employer has 20 or more employees, you can generally delay Part B without penalty.
Additional income can open you up to potential medicare income-related monthly adjustment amount (IRMAA) surcharges. IRMAA surcharges are based on your modified adjusted gross income (MAGI) from two years prior, so the gain will be included in your income data used to calculate your Medicare premiums at that time.
Exceeding Medicare’s IRMAA thresholds, which are tiered, can result in higher Part B and Part D premiums. You may also be subject to the 3.8% net investment income tax on investment earnings. For 2026, the maximum IRMAA surcharge for a married couple in the highest bracket is roughly $6,936 per person per year or $13,872 for a couple.
To request a new IRMAA determination, complete Form SSA-44 – Medicare IRMAA Life-Changing Event – and submit it to the Social Security Administration. Along with the form, you’ll need to provide documentation of your retirement (such as a letter from your employer or evidence of your retirement date) and an estimate of your income.
If you’re delaying Medicare because you are covered under an employer’s group health plan, be sure to enroll during your Special Enrollment Period after your employment or employer coverage ends to avoid late-enrollment penalties. Make sure there isn’t a gap between the end of your employer health insurance and the start of your Medicare.
That’s the good news, the bad news and the in-between news.
Related: I am a 63-year-old semiretired physician. If I saved $2 million for retirement, should my Social Security become optional?
The Moneyist regrets he cannot respond to letters individually. Check out The Moneyist’s private Facebook group, where members help answer life’s thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.
More columns from Quentin Fottrell:
‘It’s heartbreaking’: My brother claimed Social Security at 70. He died from cancer after one payment. Why wait to claim?
‘I’d hate to end up with an unexpected tax bill’: I’m 73 and still work full time. Can I avoid paying taxes on my Social Security benefits?
I will definitely claim Social Security early. Why do so few people talk about the elephant in the room?
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-Quentin Fottrell
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07-28-26 0915ET
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