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55% of working boomers say they’ll retire at 70 or later, and a new high‑pay job at 66 could jack their Medicare premium by $1,736.
That number comes from a recent survey by AARP and Bloomberg, which asked Americans aged 55‑70 about their retirement plans. I checked the report and the data line up with what I’ve heard at coffee shops across the country—people are scared to stop working because they still owe money on mortgages and college loans. Because Social Security isn’t enough to cover living costs, many are hunting for higher‑paying gigs even if it means paying more for health coverage. The Medicare Part B premium is income‑based; earn $200,000 at 66 and the monthly bill jumps by about $144, which adds up to $1,736 a year. So if you’re a boomer eyeing a raise, brace for that extra cost.
“55% of working boomers expect to retire at 70 or later.” — AARP/Bloomberg Survey
Higher earnings mean you’ll also bump into a higher tax bracket, meaning a bigger slice of each paycheck goes to the IRS. Real money. A huge headache. But the upside is you can offset some of that with smart retirement moves.
How to Keep the Extra Cash
First, max out your 401(k) or IRA before the year ends; those contributions lower your taxable income and can shave a few hundred dollars off that premium increase. Second, consider opening a Health Savings Account if you’re on a high‑deductible plan—those contributions are tax‑free and can pay for medical costs. Third, look into delaying Social Security until 70; the benefit rises about 8% each year, which can offset higher Medicare costs. And finally, check whether you qualify for the “income‑related monthly adjustment amount” (IRMAA) reduction if you can lower your modified adjusted gross income through deductions.
The Bottom Line
- Boost retirement contributions to lower taxable income.
- Open a Health Savings Account for tax‑free medical spending.
- Delay Social Security benefits to increase monthly checks.
- Plan to keep Modified AGI below the IRMAA threshold.
And if you’re already over the income threshold, look into filing separately for your spouse to see if that lowers the combined IRMAA.
Read more about the Medicare premium jump here, and discover cheap upgrades that can boost savings in this guide.
For official premium calculations, visit Medicare.gov.
I tried filing early — which usually works best — but the IRS system crashed on day one.
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