There are many obstacles to overcome when figuring out how to retire early – before the age of 65. Retirement at 62 is very popular, but three years before Medicare qualification. The average cost of health insurance 62-65 will be high, and it will be even worse for those who choose or otherwise retire.
You can’t use Medicare until you’re 65, and your 40s, 50s and 60s self-insurance can be very expensive. It doesn’t matter, as you get older, you usually face more health challenges and therefore are more likely to use health care.
How many? Average cost of health insurance ages 62 to 65
The average cost of health insurance for people aged 62 to 65 may vary greatly depending on factors such as location, health status, and the type of plan you selected.
Here is an approximation of the average cost for various coverages:
- ACA Market: $800 to $1,200 per month (no subsidy)
- Employer sponsorship: $200 to $600 per month (if still employed)
- Cobra: $700 to $1,500 per month (depending on previous employer plans)
Can you afford early retirement healthcare and early retirement?
Use Boldin Retirement Planner to find out now if you can afford to retire early and explore the following ways to significantly reduce this fee so you can breathe easily!
9 Ways to Reduce Costs or Coverage Health Insurance for Early Retirees
1. Go to private
Private personal coverage is probably your most expensive but flexible insurance option. It’s worth pricing this option and comparing it to other insurances.
2. Retirement early using the Affordable Care Act (ACA or Obamacare)
Whether you like the plan or hate it, the Affordable Care Act (ACA) makes the cost of health insurance for early retirement more achievable and affordable.
One of the ideas behind ACA is that insurance is available to everyone – pre-existing conditions are not a factor. This is especially useful for people in their 50s and 60s – most people have or are facing some kind of health problem.
The program also provides subsidies based on your family income. If possible, it is worth keeping your income (especially your modified adjusted gross income (MAGI)) to minimize your insurance costs to retire early.
Note: Some retirees work hard to withdraw money from Roth or non-retirement brokerage accounts to minimize their Magi and qualify for ACA subsidies.
Whether you are eligible for subsidies or not, it is worth exploring your ObamaCare health coverage on Healthcare.gov or obtaining a cost estimate from the Kaiser Family Foundation Foundation Health Insurance Marketplace calculator.
3. Early Retirement Health Insurance – Are you eligible for a Cobra?
In some cases, if you lose your job, you are still eligible to benefit from the company’s group health plan. “Using the Integrated Comprehensive Budget Settlement Act (COBRA), you can expect to pay about 2% more on the plans of the old company than the total health insurance costs,” said Corey Purkat, founder and CEO of Northwood Financial Plan.
“It will be more expensive than you still work at the company, but it is still cheaper than paying your health insurance alone,” he said. “With a very good reason to let go, like a criminal investigation, the only way to not qualify for a cobra.”
Continued coverage under cobras is usually over a relatively short period of time, usually from 18 to 30 months.
4. Spousal benefits can provide insurance for early retirement
If you are married, you may have an option to use your spouse’s health insurance plan.
In many cases, one spouse may retire early, but the other is still working full-time. This is a good situation because if you can pay for years before age 62 with your spouse’s insurance, it can save you a lot of money.
5. Use HSA to help pay for your fees
HSA (Health Savings Account) is a powerful tool for early retirees to bridge the gap between retirement and Medicare eligibility at age 65. By contributing to the HSA at work, especially if you are 55 or older and can make hunting donations, you can build a tax-free reserve to cover health care costs for early retirement. Donations are taxable and funds are not taxed, providing a significant advantage for long-term savings.
After retirement, you can use HSA funds to pay out on-the-pocket medical expenses such as deductibles, sales, prescriptions and eligible expenses such as dental or vision care. You can also pay for cobras using HSA Insurance premium Or, if eligible, health insurance premiums help manage health care expenses while obtaining unemployment benefits without taking advantage of other retirement savings. Although HSA funds are not usually available to ACA market premiums, they can still significantly reduce your healthcare burden by paying other medical expenses until you are eligible for Medicare.
Learn more about the many benefits of HSA.
6. Guaranteed, but also take good care of your health
But the biggest thing to remember about early retirement is to stay active and healthy.
“The worst thing you can do when you retire is to sit around the house all day,” Pulkart said. “Be sure to exercise, be involved in your community, and even work part-time. These behaviors will contribute to your overall health and well-being and help keep your health care costs down.”
Research shows that staying physically active can also help fight the onset of Alzheimer’s disease, the most common neurodegenerative disease. This emphasizes the dangers of a sedentary lifestyle.
7. Find a part-time job
The increasingly popular choice of early retirement medical benefits is a part-time job.
You can retire, but find a low-stress show somewhere that provides health care to benefit part-time and full-time employees.
There are fewer and fewer national companies offering such benefits, but check out the following companies that help provide healthcare for part-time jobs. To qualify, you need to work during the probation period, usually at least 20 hours a week:
- Total foetus (must work 20 hours a week.
- Costco (20 hours a week.
- Lowe (at least no hours a week.
- Starbucks (20 hours a week).
- UPS (1 hour per week. Eligible after the first year of employment.)
- JP Morgan Chase (20 hours a week. Eligible after 90 days.)
8. Explore healthcare sharing programs
Healthcare sharing programs are a very new phenomenon. These programs are brought together by a group of like-minded people to help each other’s medical expenses.
The most famous healthcare sharing program is Christian based and requires a belief in the Christian faith to participate. (These health sharing programs can be formed under legal religious exemptions.)
Dr. Jim Dahle, a white jacket investor, described the plan like this: “One option for one of my partners (coverage for early retirement) is one option for using the Christian Health Sharing Department. It’s not really health insurance. It’s similar to it, but it can use it to reduce unexpected health care costs.”
“The real benefit is that it’s very cheap. Now, it can’t cover something that health insurance covers. So there are some risks there, but if you develop something horrible or some chronic disease, in a few months you can keep communicating and buying qualifying policies and fences of qualified policies and types, [your] bet. ”
The most disturbing possibility is that these plans are not classified as insurance and have no legal obligation to pay for medical requirements.
Here are some of the most popular Christian healthcare sharing programs:
9. Have a good overall retirement plan
Paying for health is important whenever you retire (early or late).
The overall plan is absolutely necessary for how to fund retirement.
A very good retirement plan defines how much money you have now and in the future, and it describes what you spend now and in the future. Boldin Retirement Planner is an easy-to-use tool to help you solve this problem. The tool was recently named the Best Retirement Calculator by the American Association of Individual Investors (AAII).
Updated on March 26, 2025
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