Health insurance can feel overwhelming whether employed or retired.
Medical care is valuable at any age.
As adults grow older, they tend to require more appointments with physicians.
The number of tests and screens grow more prevalent as the body naturally wears down with time.
According to a recent Kiplinger article titled “I Can’t Retire – I Need Health Insurance,” those who are nearing retirement will need to account for health insurance in their plans.
While people can begin collecting Social Security at age 62, they cannot qualify for Medicare until age 65.
How are people supposed to address this gap?
Some individuals choose to delay their retirement until age 65 when they can utilize Medicare.
Although this is an understandable option, it may be unnecessary under the 2010 Affordable Care Act.
How does the ACA impact health insurance and retirement?
It has evolved to provide more options for coverage.
Coverage through the ACA uses expected household income to estimate your monthly payments.
Those retiring early may find they have minimal earned income.
For those who retire before age 65 and have enough to live off of in their bank accounts without having to tap into IRAs, the cost of health insurance may be less than anticipated.
In fact, the cost of health insurance may be significantly reduced.
Those who retire are eligible to apply and enroll because retirement is considered a “life event.”
If you have further questions about health insurance and your retirement plan, you should consult a trusted financial advisor.
Reference: Kiplinger (Aug. 7, 2022) “I Can’t Retire – I Need Health Insurance”