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Opinions on health insurance in early retirement

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  • Opinions on health insurance in early retirement

    interested in opinions from anyone who has done this or researched insurance before age 65.


    I am looking to retire in the next year or so and will have 8-9 years before I am eligible for Medicare. I have an option to keep my employer's plan with me for the entire time. The current cost for the plan would be about $1300 a month

    My wife and I could go on her company's plan but she will almost certainly not work until 65. I could also look for a private plan or on an exchange. I might be able to find something cheaper but I figure I could be at risk for losing coverage depending on what happens with healthcare in the US.

    My thought is that the potential extra cost is worth the peace of mind knowing I have coverage with a good plan until 65. Curious about opinions from anyone who has looked into healthcare coverage options.



  • #2

    My thought is that the potential extra cost is worth the peace of mind knowing I have coverage with a good plan until 65.
    Click to expand...

    That may represent a discount rather than an extra cost, depending on your local market. The cost of a private plan for a 57 yo couple in 2016 was $25,000/year in my area.

    I'd jump on the employer plan if you're confident it will cover you until Medicare eligibility.
    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.


    • #3
      Currently, we're projecting $25k/yr and inflating for projected medical expenses including health insurance for early retirees. After age 65, we're keeping it in place to pay for the additional costs as clients age and just to be conservative. That projection will change based upon the specific client's health situation and preferences. The state you live in makes a difference, also, of course, but I currently have no confidence that state-specific insurance choices will remain static in the future.
      My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
      Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients


      • #4
        WCICON24 EarlyBird
        Thanks. Of course we have no way of knowing how much it will go up in the future but it sounds like it may actually be a good deal. It's the plan I have had for almost 20'years, the deductible is not too bad and I do get to keep it until Medicare age but I would need to take it when I leave and hold onto it until I am 65. I may have been comparing it to plans based upon low or no taxable income but that of course is a big question now.