Why Social Security Checks Get Smaller After 65

When you turn 65, you may end up bringing home less Social Security income.

You should plan for it in your budget so you understand what to expect as you age.

You can claim Social Security retirement benefits starting at 62, and many people choose to do that, or to claim shortly after eligibility.

An early claim relative to your full retirement age will shrink your monthly check, but a good number of workers are willing to accept that trade-off because they want to retire early and need Social Security to help them do it.

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One thing you should be aware of, though, is that your net income from Social Security checks is most likely going to shrink starting at 65. Here's why that's the case for many seniors, what you should do to plan for it, and why it is not necessarily always a bad thing.

If you have claimed Social Security before age 65, you must be aware that a big change is coming once you hit 65. It stems from the fact that you will become eligible for Medicare for the first time.

Many seniors must sign up for Medicare as soon as they reach eligibility age, because they will face lifetime financial penalties if they don't. Unless you qualify for a Special Enrollment Period or you enroll in a Medicare savings program, you will end up paying an extra 10% penalty for each 12-month period that you could have signed up for Medicare Part B but didn't do so if you didn't have other qualifying coverage.