Medicare’s 2-year look-back rule can spike premiums by hundreds a month when retirees sell their homes For many older Americans approaching retirement, selling the family home and downsizing is at the top of the to-do list.
The move not only makes home maintenance and upkeep easier — it can also leave retirees with a nice chunk of change
But a Medicare trap could eat away at those earnings — and should be taken into consideration when deciding when the right time to sell is. Must Read What to consider before selling your home in retirement Americans often start retirement, and in turn the downsizing process in their mid 50s to mid 60s. According to the Transamerica Center for Retirement Studies, the average age of retirement in 2024 was 62.
Of course, depending on someone’s financial situation, capabilities and career, they could choose to wait until their 70s or 80s. The decision, however, should take into consideration a Medicare premium surcharge called an income-related adjustment amount (IRMAA). At the age of 65, you begin qualifying for government health insurance for seniors.