My health insurance decisions and cost in retirement (before age 65). Can I retire now?

My health insurance decisions and cost in retirement (before age 65). Retirement Planning. Can I retire?

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*Video on health insurance before Medicare*
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RECOMMENDED FINANCIAL ADVISOR
Neil Fortwendel with Northwestern Mutual ph: 812 549 5213

Video by Lean Driven Reliability LLC
This is not investment advice, retirement advice nor advice at all. For entertainment ONLY. Seek professional help to understand your unique situation.
Affiliate Disclosure: Most of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and purchase or set up a discussion. Nevertheless, I only recommend products or services that 1) I currently use or have used or 2) I believe can help the majority of people.

#retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence

[AtomicZombieAndroid]

I'm impressed Joe. No NR or Pickle ad. Its very refreshing to get some straight talk without the feeling that you are trying to sell me something.

[kimngatran]

Thank you, Joe, for raising financial awareness of this number one question Healthcare insurance before 65. This is my number one worry for not retirement early before 65.

[debbiemorgan]

I'm nearly 53 and my plan was to retire at 55. I was healthy until 2 years ago and have since been diagnosed with 2 cancers. One of the cancers is really rare and at some point I may need out of state complex surgeries, treatments and even clinical trials. My dreams of early retirement have been crushed as I must have good health care with out of state coverage until I'm 65 and eligible for Medicare.

[garrett]

Control your income and you can get cheap insurance through the ACA.. it’s not greatest, but not terrible. I pay $49.95 a month.

[FireFighter]

I am fortunate enough to have an employer sponsored health care plan. And, part of the premium covered by them too! This allowed me to retire at 55 in 2020.

[martybabitz]

Great video on a key topic, Joe. One thing I would add is that retirees can continue to contribute to HSAs in retirement which is huge because it can allow you to fund at least part of your health insurance and health care costs from the HSA with tax free dollars.

[Wayneman]

I worked until wife became eligible for medicare, She is 4yrs older with a breast ca hx. Her ca med is expensive, our cost $3300/month. Better on medicare now with the new drug plans. That $3300/month will be $3400/yr. I am 61 1/2 just retired. Cobra for me was $925/month. Using ACA in Fl. Using a subsidy that if our combined agi is less than 50, 000 it will cost me $460/month for a gold plan. I have been planning this for a few yrs. Built up enough cash to cover my expenses for 3 1/2 yrs until i reach medicare age. A lot of planning went into this strategy. It is tricky because the wife receives about $33, 000 a yr in ss. So, we have a $17, 000 buffer for dividends and other things that might increase our agi. ACA is weird because they want you to predict your future years earnings. If you go over you owe them money. Medicare on the other hand goes back 2 yrs. They surely like to confuse the old folks. Do your homework and find out which avenue is the right one for your situation. Great video Joe.👍

[ForwardThinkingIncome]

I agree, i don't want to assume. However, i can only assume being about 7 years out from our retirement estimate. I made a mistake putting in older birth years in ACA to get an idea. Well now over a week of the phone calls an text from ACA insurance sales. We are maxing out my wife's Roth IRA for next 5 years to get more investments to not cause a taxable event to play the tax game.

[dancurran]

I retired in the middle of the year so we got a nice subsidy from Covered California. It will cost less next year when we look poorer on paper. We have the silver plan with dental for under $600 a month. We were able to stay with Kaiser, the HMO that we had when I was employed.

[suzannegerardi]

Started our Roth (with spouse) accounts in 1998 at age 35. Maxed out every year till 2021. Did 401k Roths from 2010 till 2021, again maxed out till 2021. Averaged about 100, 000- 170, 000 jointly in that span for 25 years.
Retired at 60. Have 62% in Roth retirement accounts, 38% in pre-tax accounts. Will use pre-tax accounts for next 10 years. Will only use Roth lever before 70 (taking SS ) to buy ACA insurance only when needed to take advantage of subsidy. Plan accordingly with Roth accounts to gain totally flexibility in early Retirement.
It's said only 5% of retirement accounts are in Roth.
Question?? Is there anyone out there a Roth Millionaire??

[KDexters]

I called the company retiree health line and for Cobra was quoted 3X the cost of what I am currently paying. Researching ACA plans, found a few in the 1.6X range but with higher deductables....but with the same Insurance company we now have. USAA has similarly priced plans, but also offer dental and vision plans. You are right, Joe, you gotta do your research!

[markmiller]

There is a ton of information out there about maximizing ACA subsidies. We will pay about $400 a month for a decent plan based on taxable income. If you can set up your finances with enough tax free income to bridge the gap until CD's and is surprising how affordable it can be. BUT YOU NEED TO UNDERSTAND AND DO THE WORK.

[Bob-yhir]

Looking at health coverage for early retirement. We are leaning towards ACA since most years we will have MAGI of 50 to 60 K and still be able to get subsidies. Right now we could get a mid tier silver plan for 165 a month to cover my wife and I. We could bump that up to a gold plan for about 275 to 300 a month to get a lower deductable. An insurance broker found us a private plan that is closer to what we have while working for 600 a month. So we could do that as well. We only want to keep the health insurance below 700 a month.

[FionaMacDonald]

My friend recommended her health insurance agent that she had used when trying to find a Medicare plan. He was ever so helpful and I just gave him the list of doctors I see and he came back with an ACA plan that included them all. And you don’t pay them for it! My plan is HMO and includes dental and vision too. By managing my income I get the premium down to $300 a month. Like you said though all dependent on your state - I’m in MA

[LittleCabin]

Federal employee here (Dayton, OH) -- my wife and I will be keeping my insurance going into retirement, as I'll get the same plan for the same premium as when employed (currently around $585/month). The main difference will be it will not come out of my pension pre-taxed, so will be a little bit more expensive. That said, we enjoy a zero-deductible plan with pretty low co-pays -- the best insurance we've ever had, so will keep it as long as it makes sense, at least until we turn 65.

[nasirk]

I live in Northern California. I’m 63 three. Till 2022 I had employer medical plan. Last year I had a pretty decent covered California medical plan which I paid for about $550 a month for myself only. This year, the same plan was $650 a month so I switched to a less desirable plan still at $550. In a few months, I turned 64 and then at 65. I plan on using the Medicare. Based on my research, I would have to purchase part D for prescription for about $100 and Plan B for about $150 that covers parts an and B. My current insurance is with blue anthem and they have an option for about $56 called anthem extra which will cover dental envision for one person. So starting in 2025 instead of $550 a month I’ll be paying a little over $200 a month with Medicare and out-of-pocket gap coverage. I rarely use my medical plan because I’m in really good health and I have no pre-existing conditions.

[dorinatudisco]

Thanks for sharing! Including on the health plan you have. Super helpful.

[mikeh]

My wife and I use Christian Health Ministries (Gold Plan with Brothers Keeper) - Both of us for $514.00/month) for 7 years. It has been awesome and we can use any MD we choose in any state ... does not cover Dental or Vision.

[JoeMazingAdventures]

I retired a year and a half ago at age 51. My retirement package includes the same health insurance coverage as when I was an employee until I reach age 65, so my former employer pays the monthly premium and I pay nothing. I buy into dental & vision for $450/yr- the same rate as when I was an employee.

[Davek]

I retired at 59 last year. $2M portfolio and I pay $0 via ACA.... simply by controlling my income at $24k a year with my Vanguard accounts.