cdubea

All,

I turned 60 this year, and I'm seriously thinking about retiring. The nest egg is well and fully funded and to be honest, I don't need to work anymore. Ideally I'd like to get to 62.5 so at least I have the option of claiming SS, even though I might not actually do it.

What concerns me though is health care. As you can't claim medicare until 65, even if I wait until 62.5 there is going to be a gap in coverage from my employer's provided plan.

To those who retired early, how did you manage your health care?

If it matters, LOML and I are prolly going to wind up in TN or SC for retirement. Cost of living up here in northern VA is absurd.

Thanks,

MsPerky

I retired just before turning 64. Fortunately, I did not have to worry about health insurance because mine carried over into retirement from my time in the federal gov't. Cost of living here is high. The +1 is still working, however, and we have no plans to leave the area. My ex is local for now, but has just bought a home outside Charleston, SC. He and his gf are moving in the next couple of months. She does not work and he said he can't afford to live here in retirement, either. Good luck with whatever you decide.

cosmomiller

Something to consider for major work (hips, knees, eyes, cardiac, etc) is spending 10% of the cost and have it done in Thailand. (Bangkok) I know it sounds goofy at first blush but I can tell you I have spoken with many, many people who have done just that. I fly them there myself!
Thailand is a first class destination for medical care. One of the best places in the world. Again, the cost is 10% of what it is in the States.

Lainey

In our area Blue Cross sells non group plans. They are decent but not inexpensive. MA had health mandates before Obamacare so we have some protection. My sister lives in SC. Even with group insurance her health care plan is $$$$. Do your homework before you decide where to live. I'm trying to hang on at work until I'm 63 1/2 or 64 then I can take COBRA coverage. If you hang on until 63 1/2 you won't have to shop as long as your company is in business carrying a plan However if you have an HMO coverage could be an issue if you move

buckeyesue

Lainey, would the COBRA coverage still be pretty pricey, though?

It has never been an issue for us, because my husband is still working (at almost age 75), so we are still covered by his employee health insurance.

However, I know that where I worked, (The Ohio State University), the COBRA rates are still pretty expensive because the University makes no contribution. While one is still employed, the University makes a very good contribution to your health insurance.

For example, under COBRA, depending upon the plan chosen, for employee only, it is about $500 to $600 per month.
For employee and children, it is about $1000 to $1100 per month.
For employee + spouse, it is about $1200 to $1300 per month.
And, for family coverage, it is about $1800 to $1900 per month! (Perhaps, most retirees, though, would not have family coverage.)

(The above COBRA rates are much much higher than the employee rates.)

My husband and I have been very lucky in that both of our employers make very good contributions to health care, so perhaps we are out of touch with how much other people pay even while they are still employed because their employers might not contribute very much.

We are not looking forward to our health insurance costs after my husband retires, because we know our health insurance costs (Medicare plus supplement) are going to be WAY higher than we are paying now.

Lainey

Hi Sue. Yes COBRA is full price. In my case $689.00 for a single plan. Right now I pay about $150.00 per month. Rick is now on Medicare. His Medicare his supplement and his part D runs around $230.00 / month. So early retirement with no portable health insurance is costly. Medicare and supplements for two will be in $500.00/month range. Choice of supplement plans affects cost and depending on income some pay more for Medicare Part B

buckeyesue

Yes, that is the part that is scary to us...that "depending on income, some pay more for Medicare Part B." Some of those surcharges for Medicare Part B are quite hefty!

(But, I guess the "unfortunate" part of the high surcharges for Medicare B is because of the "fortunate" part of a higher income from my husband's private pension, husband's social security, my state pension, and minimum required distributions for both of us once my husband retires. Right now, he does not have to take all of his minimum required distributions because he is still working, but once he retires, that won't be the case.)

NNY S2k

I retired a few months before I turned 62, my employer offers retirees health coverage (comes out of retirement). I had to take the family plan to cover my +1 Karla who is now only 60.I'm now on medicare and for me to cover Karla runs me about 400 a month. Compared to many others I guess it ain't too bad.I hear from friends that have relocated out of NY that coverage in some states leaves a lot to be desired, Tenn. being 1 of them.
Levi

Zippy

We initially had to buy in the open market. The ACA has provided us a good respite from the outrageous days early on. Please do check with the states you plan to move to. There are different issues in differing states in how they handle (or not) the ACA. I am in NJ and like Ma. we have had many of the ACA protections before it came to be. Again, I would strongly encourage looking at the state, I know nothing of Tn., but I do believe SC has some more stringent terms to their ACA rules.

Legal Bill

I'll be doing a Cobra carry over after I leave the firm. The premium won't change for me as I am already an owner and pay 100%. Cobra won't take me all the way to 65, however. So I'll probably be in the marketplace for six months or a year. My hope is that Ill be far enough out of work that my premium based on my retirement income, rather than my work income.