65 and Still Working? – 5 Things to Know

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If you’re 65 and still working, this article is for you! Working past 65 is very common among most Americans these days. The U.S. Bureau of Labor Statistics estimates the rate of workers age 65 to 74 in the workforce will reach 30.2% by 2026. That is up 26.8% from just 2016. This may be due to Americans not being ready to retire, wanting to save more, or wanting to maintain their employer’s health insurance. No matter the reason Americans continue working, there are a few things you’ll want to know. Keep reading to find out!

Medicare Eligibility and Health Insurance

When you turn 65, that is typically the age that most people will begin Medicare. Medicare is the health insurance program in the United States for those 65 and older, those with disabilities, or end-stage renal failure. When you’re 65, you will likely sign up for Original Medicare. You’ll then decide if you want to pick up a Medicare Supplement plan or a Medicare Advantage plan: boomerbenefits.com/medicare-advantage/.

Some people will choose to stay on employer coverage as long as possible if they like it. Medicare can be a very confusing topic, so many choose to avoid it if they can. Suppose you decide to work past 65 with creditable employer coverage. In that case, it’s essential to know that once you get rid of that coverage, you will have a period where you’ll need to enroll in Medicare to avoid late penalties.

Contributions to Your HSA

When you are past 65 and working, you can still contribute to your HSA. If you stay on your employer plan and want to contribute to your HAS, you not want to enroll in any part of Medicare. Once you are on Medicare, you no longer want to contribute to your HSA plan.

If you’re turning 65 and know you’re planning to enroll in Medicare, you will have to prorate your HSA contributions. For example, if you’re turning 65 in October, you can only make nine months’ worth of contributions in that year.

Minimum Distributions

It’s essential to know that when you’re 70 ½, it will be time to take your required minimum distributions from your 401k. If you’re still working, you may have an advantage. Some plans will not require you to take the distribution until you retire.

Be aware of your minimum distributions and the timeline when you will need to move your funds. Knowing your retirement and investment accounts is especially wise if you’re 65 and still working. It will help you determine just how much you have and how much to keep contributing to your investment accounts.

Set a Retirement Goal Date

Some day you will say goodbye to your full-time job and move forward to the retirement phase in your life. But exactly when will that be? Do you want to give yourself a long retirement? Or do you love what you do in your career and want to keep working for five more years? Setting a goal date will help you to be prepared financially, know if your partner is on board, determine if you’re emotionally ready to walk away, and have a clear vision for retirement. If you don’t set a goal date, you could risk life moving so fast that you regret not taking any time for yourself.

Determine Where You’re Going to Retire

While you’re still working, you can start thinking of where you’re going to live when you retire. Do you want to move to the coast and be by the beach? Maybe to the countryside? You have many options to live in places you may not have been able to during your working years. It’s important to start thinking about this while still working to determine the financial cost of living in your ideal area.


If you’re 65 and still working, you still have time to think about all of the topics above we mentioned. It’s best to start thinking about this while still working to avoid getting overwhelmed when retirement comes. Retirement should be a time for you to kick back & relax!