I see a lot of videos out there talking about the pros and cons of retiring at 62, this is the first time I have seen anyone talk about the importance of getting healthcare during that period. I have a friend, let's just call him DA. Now, DA decided to retire at 62. He had not included health insurance in his plans, it just cost too much. He was in good health, so he believed. He was thin, walked daily, annual checkups, no diabetes and good cholesterol, numbers. DA had it all worked out. He retired at 62 and was going to spend a couple of years traveling.. Two month's into retirement he had a heart attack. Now DA was ok, he just got a couple of stents and two weeks later he was cleared to resume traveling. Of, course DA now had a $47k medical bill that he had to pay. End of travel plans for him. It could have been much worse, if he had not had that money saved up for travel. For most of us in our 60's a $40k+ medical bill would be devastating.
Indeed! Some thoughtful health insurance discussions would have allowed him to avoid this financial situation. At the same time, not retiring because of health insurance isn't the best strategy either. People need to learn the options. Thanks for your comments.
If he had Life Insurance with Living Benefits that covers critical (including heart attack), chronic terminal illnesses he could have claim from that insurance policy, this is a type of life insurance policy that you don’t need to die to claim from the policy. Having this gives me a peace of mind that in case something happens I don’t need to tap in to my investments. I’m thinking about retiring before 65 and I need health insurance I’m glad I bump into this topic.
Plenty of countries that DO have healthcare systems also offer retirement visas and have cost of living that is much lower than the USA. Find a way to make yourself useful and build up those countries, and your emigration will be a win-win for everyone.
@@bruceeigsti5274the private insurance company cost 640 but the government subsidized $490 so the monthly premiums are only $150. My girlfriend pays only $60 a month out of $360 in Kansas. Government pays the difference because it's income based
Health in this country sucks….return to England and myself and my American wife and kids get it automatically. Worked for the telephone company and the CEO, Randall Stephenson decided to end health car until age 65 if an employee leaves. All this because Randall Stephenson lost 67 BILLION in bad decisions and the employees pay the price while he retires with $246K a month in pension. Worst CEO in history of ATT..if not the entire U.S.
Good stuff guys. Retired physician at 61. Agree health insurance a must. I looked at ACA. In Texas it is an HMO. It is out of network at the big downtown Houston hospitals. Created a business entity with myself and wife so we could get a group plan and have a PPO.
If you want that subsidy you have to delay Roth conversions, especially with the tiny ACA brackets singles get. That could be a lot of future money foregone to take that subsidy.
I have all Roth funds abd ss 3100 mthly get a good silver plan fur me and my wife fir 80 mth $ 3900.max out of pocket no copay for dr visits 10 for a specialist
Hey guys, when you get laid off after 20+ years at 58, work your $##ss to get work and end up doing contracts/1099 where you are covering your own healthcare cost, the "employer coverage" is a fantasy for a large part of the work force that is permanently caught in the contractor/W2/1099 loop.
Excellent show, guys! You guys pretty much confirmed and answered every questions I had about health insurance...just before taking an early retirement. Thank you!
I just tried to sign up for the ACA. Wow! Sticker shock. I paid my mortgage off so if I kick the bucket, my wife won't be burdened. Hell if I am going to pay $750 a month for a plan with a $12,000 deductible. At this point, I am just going to get a medical alert dog tag that says, "Uninsured, do not treat".
This is where the money used to pay the mortgage would come in handy. By having free cash to pay the bills, income remains low and the healthcare subsidy increases.
I am 59 and have a HSA with my job. I would love to retire before 65 and covert my IRA to a roth, but I am afraid if my employer cuts my hours or lets me go I would need health insurance that would be out of my price range. I looked at cpvered California and I can get the best insurance by earning $20,500 per year plus my standard deduction of $13,850. So if I earn $34, 350 per year I will get the best insurance for free from Covered California, but if I'm not working how do I earn that. The answer is to convert that amount from your IRA to a roth Ira. That is considered income. For now my plan is to work to have my health plan, sock as much money into my Roth Ira, and convert my Ira leaving enough to get insured till I reach 65.
Sounds like a plan. Keep in mind that healthcare subsidies are calculated based on Modified Adjusted Gross Income (MAGI). That's before the standard deduction.
Just go down to the border and then cross back over into the us and you will get free food healthcare and a phone. Live off the grid in California for 3 years consider it a vacay.
How do you get a written answer as to whether or not an ACA plan will cover your existing prescriptions and the out of pocket expenses for those prescriptions before signing up for the plan?
@@rinesmith you can access the plan's prescription drug formulary prior to signing up. One of the most important steps an insurance agent must take is to confirm prescription drug coverage prior to enrollment.
We need single payer, all the money going into one pot to prevent adverse selection...this will drive down the avg cost per person..drugs must get under control as it's not unusual for people to be on $10,000 of meds per month...
I retired at 62 and I had left work and applied for medical insurance online on my phone and got scammed I wound up with vision only I tried I picked a company online on my phone again and got scam😢med a second time the bank covered the first one I paid for the second one I just turned 64 was going to take a job to make ends meet one of the requirements is that you have medical insurance so this video I'm just getting into but I hope there's an answer for me
I live fulltime in a rv, domicile in SD, spend most of my time in the southwest, so ACA doesnt help me. I am on SSDI, 60 yrs old, but there is a 29 month waiting period to get Medicare, and i still have 7 months left. I do not have insurance, and haven't had it the full waiting time. I have been paying out of pocket for my disability. Do you have any options for me?
Not sure why the ACA plans don't apply to you. ACA plans cover you for emergencies when traveling outside of your home network. You may find a PPO to cover you beyond local.
We have about 5M, about half of that in taxable accounts consisting of munis, money market & total stock funds. Will it be possible to draw about 200K/yr off the taxable and still keep taxable income low enough to qualify for subsidies? We are both 58 and planning to retire end of 2024.
The ACA subsidies are based on Modified Adjusted Gross Income (MAGI). In theory you can generate $200k in income and still get a subsidy. It just depends on your MAGI. Also, the "subsidy cliff" was removed, so if your benchmark health insurance plan costs more than 8.5% of your income, you may also qualify for a subsidy.
I would LOVE to retire NOW....I'm 61 and have been a paraprofessional in a Kindergarten class in a local elementary school since 1996....I'm tired, worn out and just don't want to do it any more. The ONLY thing holding me back is insurance. My husband is 72 and been retired for 10 years and is on my insurance. He is going through cancer treatments right now, but prognosis is good. He could jump on Medicare, hopefully G plan (we live in CT) and I would just have to get insurance for myself. How do you find an insurance advisor who will work for ME and not the insurance companies ? I want to find someone who is looking out for MY best interest and not pushing me to some particular insurance company because they get a better commission. I know nothing about insurance and how to wrangle all this .....I just want to be done wrangling unruly kids and dealing with adult drama in the workplace.... 😕
You should focus on finding an independent broker that represents multiple companies. When it comes to health insurance in CT, start here: www.accesshealthct.com/ and use the broker search function. Be sure to ask if they represent multiple insurance carriers.
The health insurance marketplace has come a long way since 2010. Working until 65 just for health insurance isn't ideal. It's worth exploring the options.
@@laurie3085 I'll let you know next year when I turn of eligibility age! 🤣 I've asked that question to many, but have never gotten a straight answer either.
@@bigjohnson7415.. look at your W2 box 12 code DD that is what your employer paid towards your medical. Now divide that by 12 , than add your monthly contribution of medical costs. Plus 2% for administration costs. You can google this up My cost is $ 800 per month I can keep for 18 months I’ll be 1 month shy of Medicare. The ACA is cheaper BUT for me trying to find a plan that accepts all my doctors + meds. Isn’t easy PLUS deductibles are crazy when buying a plan A silver plan for me Would be almost $750 per month. The deductible was $12K my cobra max is $4K It is different for Everyone personal health. In my case COBRA was best ,
My question is I will be 65 and qualify for Medicare before my husband retires at 62. How does that affect us would he alone try to attempt to get Obamacare or is there some option that he can join my Medicare?
I'm going through that situation now. My wife is 4 years younger. I got on Medicare and she is getting a subsidy from Obamacare. The amount of the subsidy depends on your estimated income for the year. I'm delaying my SS in order for her to get the subsidy. If you go over your estimated income for the year, you have to pay some back at tax time. Last year was my first year of doing it. It's kind of a pain in the butt, but a personal plan from an insurance company for her was around $1500 a month when I looked into it.
This is what I am running into. To keep my employees insurance for me and my spouse would be $1600 per month thru cobra. And my husband would have a pre-existing dx of cancer and doing chemo. And the affordable act was going to be $1500 p/m. This sucks
It may be worth checking the subsidy rules and calculations. Perhaps you can adjust your income to increase the subsidy and reduce your out of pocket costs.
That guy who kept his job because his wife couldn’t get insurance is ridiculous. All she had to do was get a part time job that gives health insurance like Starbucks, target etc. At 71 you really don’t have much time to physically enjoy life!! That’s insane
Twenty years ago you could choose a policy at a reasonable price. democrats took choice and price out of private insurance and now there are no good options.
I’m calculating how much I can take out of my 401k this year. ) retired @58) The 2022 FPL for a household of 2 was $18,310 according to HHS.gov but the FPL on 2022 IRS Form 8962 instructions was $17,281. A difference of $1,029. Why the difference? The 2023 FPL for a household of 2 is $19,720 according to HHS.gov. What's a safe FPL to use in projection 2023 taxes? I'm wondering, when do the 2022 IRS Form 8962 instructions come out? That's the # you have to use for taxes.
We use this www.healthcare.gov/glossary/federal-poverty-level-fpl/ Sometimes the IRS uses previous year numbers when creating forms. Be sure to look at the wording around the table for clarification. Also, double-check on potential penalties for pulling from a 401k prior to age 59.5....
I see a lot of videos out there talking about the pros and cons of retiring at 62, this is the first time I have seen anyone talk about the importance of getting healthcare during that period. I have a friend, let's just call him DA. Now, DA decided to retire at 62. He had not included health insurance in his plans, it just cost too much. He was in good health, so he believed. He was thin, walked daily, annual checkups, no diabetes and good cholesterol, numbers. DA had it all worked out. He retired at 62 and was going to spend a couple of years traveling.. Two month's into retirement he had a heart attack. Now DA was ok, he just got a couple of stents and two weeks later he was cleared to resume traveling. Of, course DA now had a $47k medical bill that he had to pay. End of travel plans for him. It could have been much worse, if he had not had that money saved up for travel. For most of us in our 60's a $40k+ medical bill would be devastating.
Indeed! Some thoughtful health insurance discussions would have allowed him to avoid this financial situation. At the same time, not retiring because of health insurance isn't the best strategy either. People need to learn the options. Thanks for your comments.
Sad. But short sighted on his part.
@@Savannah-ed4rv I think that was the obvious point of what I said.
If he had Life Insurance with Living Benefits that covers critical (including heart attack), chronic terminal illnesses he could have claim from that insurance policy, this is a type of life insurance policy that you don’t need to die to claim from the policy. Having this gives me a peace of mind that in case something happens I don’t need to tap in to my investments. I’m thinking about retiring before 65 and I need health insurance I’m glad I bump into this topic.
Plenty of countries that DO have healthcare systems also offer retirement visas and have cost of living that is much lower than the USA. Find a way to make yourself useful and build up those countries, and your emigration will be a win-win for everyone.
The affordable care act is fantastic! My wife pays $105 of $$640!
Glad to hear it is working for your family.
I'm confused paid 150.of 640?
@@bruceeigsti5274the private insurance company cost 640 but the government subsidized $490 so the monthly premiums are only $150. My girlfriend pays only $60 a month out of $360 in Kansas. Government pays the difference because it's income based
@@bruceeigsti5274
Health in this country sucks….return to England and myself and my American wife and kids get it automatically. Worked for the telephone company and the CEO, Randall Stephenson decided to end health car until age 65 if an employee leaves. All this because Randall Stephenson lost 67 BILLION in bad decisions and the employees pay the price while he retires with $246K a month in pension. Worst CEO in history of ATT..if not the entire U.S.
Good stuff guys. Retired physician at 61. Agree health insurance a must. I looked at ACA. In Texas it is an HMO. It is out of network at the big downtown Houston hospitals. Created a business entity with myself and wife so we could get a group plan and have a PPO.
Thanks Guys. I am 54 thinking about retirement early. But this is a huge conccern
If you want that subsidy you have to delay Roth conversions, especially with the tiny ACA brackets singles get. That could be a lot of future money foregone to take that subsidy.
It's a tricky balance between the benefits of a Roth Conversion and a healthcare subsidy.
I have all Roth funds abd ss 3100 mthly get a good silver plan fur me and my wife fir 80 mth $ 3900.max out of pocket no copay for dr visits 10 for a specialist
Nice- may I ask what provider & what state your in ?
Hey guys, when you get laid off after 20+ years at 58, work your $##ss to get work and end up doing contracts/1099 where you are covering your own healthcare cost, the "employer coverage" is a fantasy for a large part of the work force that is permanently caught in the contractor/W2/1099 loop.
Excellent show, guys! You guys pretty much confirmed and answered every questions I had about health insurance...just before taking an early retirement. Thank you!
Glad to hear and good luck with retirement!
I just tried to sign up for the ACA. Wow! Sticker shock. I paid my mortgage off so if I kick the bucket, my wife won't be burdened.
Hell if I am going to pay $750 a month for a plan with a $12,000 deductible.
At this point, I am just going to get a medical alert dog tag that says, "Uninsured, do not treat".
The system is designed for us to work until near death.
This is where the money used to pay the mortgage would come in handy. By having free cash to pay the bills, income remains low and the healthcare subsidy increases.
In New York you're forced to get insured through the state insurance marketplace.
California outlawed short term health insurance options. It can be expensive without government subsidies.
I am 59 and have a HSA with my job. I would love to retire before 65 and covert my IRA to a roth, but I am afraid if my employer cuts my hours or lets me go I would need health insurance that would be out of my price range. I looked at cpvered California and I can get the best insurance by earning $20,500 per year plus my standard deduction of $13,850. So if I earn $34, 350 per year I will get the best insurance for free from Covered California, but if I'm not working how do I earn that. The answer is to convert that amount from your IRA to a roth Ira. That is considered income. For now my plan is to work to have my health plan, sock as much money into my Roth Ira, and convert my Ira leaving enough to get insured till I reach 65.
Sounds like a plan. Keep in mind that healthcare subsidies are calculated based on Modified Adjusted Gross Income (MAGI). That's before the standard deduction.
We need to nationalize health insurance for everyone. The other alternative is expand Medicare to cover you starting at 62.
Just go down to the border and then cross back over into the us and you will get free food healthcare and a phone. Live off the grid in California for 3 years consider it a vacay.
If you are already an American you can’t do that border
Missinformed moron.
How do you get a written answer as to whether or not an ACA plan will cover your existing prescriptions and the out of pocket expenses for those prescriptions before signing up for the plan?
@@rinesmith you can access the plan's prescription drug formulary prior to signing up. One of the most important steps an insurance agent must take is to confirm prescription drug coverage prior to enrollment.
How do you find out the income bracket you fall in?
Are you talking about what level of subsidy you can qualify for? If so, you can get an idea here: www.healthcare.gov/lower-costs/
We need single payer, all the money going into one pot to prevent adverse selection...this will drive down the avg cost per person..drugs must get under control as it's not unusual for people to be on $10,000 of meds per month...
I retired at 62 and I had left work and applied for medical insurance online on my phone and got scammed I wound up with vision only I tried I picked a company online on my phone again and got scam😢med a second time the bank covered the first one I paid for the second one I just turned 64 was going to take a job to make ends meet one of the requirements is that you have medical insurance so this video I'm just getting into but I hope there's an answer for me
I live fulltime in a rv, domicile in SD, spend most of my time in the southwest, so ACA doesnt help me. I am on SSDI, 60 yrs old, but there is a 29 month waiting period to get Medicare, and i still have 7 months left. I do not have insurance, and haven't had it the full waiting time. I have been paying out of pocket for my disability.
Do you have any options for me?
Not sure why the ACA plans don't apply to you. ACA plans cover you for emergencies when traveling outside of your home network. You may find a PPO to cover you beyond local.
We have about 5M, about half of that in taxable accounts consisting of munis, money market & total stock funds. Will it be possible to draw about 200K/yr off the taxable and still keep taxable income low enough to qualify for subsidies? We are both 58 and planning to retire end of 2024.
The ACA subsidies are based on Modified Adjusted Gross Income (MAGI). In theory you can generate $200k in income and still get a subsidy. It just depends on your MAGI. Also, the "subsidy cliff" was removed, so if your benchmark health insurance plan costs more than 8.5% of your income, you may also qualify for a subsidy.
@@Dolphinfinancialgroupfl Thank you for advise, lots to think about !
I would LOVE to retire NOW....I'm 61 and have been a paraprofessional in a Kindergarten class in a local elementary school since 1996....I'm tired, worn out and just don't want to do it any more. The ONLY thing holding me back is insurance. My husband is 72 and been retired for 10 years and is on my insurance. He is going through cancer treatments right now, but prognosis is good. He could jump on Medicare, hopefully G plan (we live in CT) and I would just have to get insurance for myself. How do you find an insurance advisor who will work for ME and not the insurance companies ? I want to find someone who is looking out for MY best interest and not pushing me to some particular insurance company because they get a better commission. I know nothing about insurance and how to wrangle all this .....I just want to be done wrangling unruly kids and dealing with adult drama in the workplace.... 😕
You should focus on finding an independent broker that represents multiple companies. When it comes to health insurance in CT, start here: www.accesshealthct.com/ and use the broker search function. Be sure to ask if they represent multiple insurance carriers.
it sounds better to wait for Medicare since it is so tricky to get health insurance.
The health insurance marketplace has come a long way since 2010. Working until 65 just for health insurance isn't ideal. It's worth exploring the options.
is a pension considered income?
Yes. Healthcare.gov uses Modified Adjusted Gross Income (MAGI) for subsidy determination.
Cobra for 18 months. That's my plan to retire at 63 1/2.
Healthcare subsidies often result in health insurance costs that are drastically lower than COBRA options.
How expensive is your Cobra?
@@laurie3085 I'll let you know next year when I turn of eligibility age! 🤣 I've asked that question to many, but have never gotten a straight answer either.
@@bigjohnson7415.. look at your W2 box 12 code DD that is what your employer paid towards your medical. Now divide that by 12 , than add your monthly contribution of medical costs. Plus 2% for administration costs. You can google this up My cost is $ 800 per month I can keep for 18 months
I’ll be 1 month shy of Medicare. The ACA is cheaper BUT for me trying to find a plan that accepts all my doctors + meds. Isn’t easy PLUS deductibles are crazy when buying a plan A silver plan for me
Would be almost $750 per month. The deductible was $12K my cobra max is $4K It is different for
Everyone personal health. In my case COBRA was best ,
Never do short term med
My question is I will be 65 and qualify for Medicare before my husband retires at 62. How does that affect us would he alone try to attempt to get Obamacare or is there some option that he can join my Medicare?
You would go on Medicare alone and explore your own Medicare options. He would go on his own ACA plan or other option.
I'm going through that situation now. My wife is 4 years younger. I got on Medicare and she is getting a subsidy from Obamacare. The amount of the subsidy depends on your estimated income for the year. I'm delaying my SS in order for her to get the subsidy. If you go over your estimated income for the year, you have to pay some back at tax time. Last year was my first year of doing it. It's kind of a pain in the butt, but a personal plan from an insurance company for her was around $1500 a month when I looked into it.
This is what I am running into. To keep my employees insurance for me and my spouse would be $1600 per month thru cobra. And my husband would have a pre-existing dx of cancer and doing chemo. And the affordable act was going to be $1500 p/m. This sucks
It may be worth checking the subsidy rules and calculations. Perhaps you can adjust your income to increase the subsidy and reduce your out of pocket costs.
Get global coverage, sell your house and car and travel the world.
That guy who kept his job because his wife couldn’t get insurance is ridiculous. All she had to do was get a part time job that gives health insurance like Starbucks, target etc. At 71 you really don’t have much time to physically enjoy life!! That’s insane
Perhaps she was not able to work, even part time, due to health issues?
Why is "Tony" on this video? He adds nothing...
Many find talking to someone more enjoyable and engaging than lecturing to a camera.
It is not because a love of pizza...people will beleive you please be careful.
Skip first half of video useless
Twenty years ago you could choose a policy at a reasonable price. democrats took choice and price out of private insurance and now there are no good options.
The cost of health insurance has gone down for some through government subsidies and has gone up significantly for many others.
I’m calculating how much I can take out of my 401k this year. ) retired @58)
The 2022 FPL for a household of 2 was $18,310 according to HHS.gov but the FPL on 2022 IRS Form 8962 instructions was $17,281. A difference of $1,029. Why the difference?
The 2023 FPL for a household of 2 is $19,720 according to HHS.gov. What's a safe FPL to use in projection 2023 taxes? I'm wondering, when do the 2022 IRS Form 8962 instructions come out? That's the # you have to use for taxes.
We use this www.healthcare.gov/glossary/federal-poverty-level-fpl/
Sometimes the IRS uses previous year numbers when creating forms. Be sure to look at the wording around the table for clarification. Also, double-check on potential penalties for pulling from a 401k prior to age 59.5....
Thanks.
I retired @58. I turned 60 this year.