According to Medicare.gov, if you generate too high of an income in retirement federal law requires an adjustment to your monthly Medicare Part B (medical insurance) and Part D (prescription drug coverage) premiums in the form of surcharges through the Income Related Monthly Adjustment Amount (IRMAA).
The underlying issue is that the surcharges, as well as the bulk of your Medicare premiums, will be deducted directly from your Social Security benefit on a monthly basis. In retirement, there is income, which is a necessity, but the goal should be to ensure that it is the right kind of income in order to control your only mandatory costs and save more of your Social Security benefit.
