This is one of the reasons why people refuse to retire before the age of 65. There are many reasons why a person may not retire, including lack of money, fear of lack of money, loss of knowledge, boredom, lack of money. a sense of purpose. One of the biggest surprises we face is health insurance. As we age, having health insurance becomes more important as an investment. Some consider this to be very important, allowing the insurer to tell them if they can retire.
You can start collecting Social Security as young as age 62 or as late as age 70. However, you can’t go on Medicare until age 65. The gap between age 62 and 65 forces many retirees to delay retirement until they are able. they can go to Medicare to make sure they have enough insurance. But this should not be the case.
Sign up for Obamacare
On March 23, 2010, the Affordable Care Act (ACA) was enacted to ensure that all Americans have the right to have health insurance. The new law was met with criticism and confusion. At the time, the main criticism of the ACA involved the potential for higher premiums, reduced coverage, increased taxes and lower enrollment.
Twelve years later, we have a better understanding of the ACA and how it will benefit all of us, including those under 65.
When we mention the ACA as an option for those who want to retire at age 65, the first reaction is not good. People think that insurance is risky and expensive. That is not true. The ACA has improved since its inception and allows you to control the amount you want and need.
My home app page, www.nj.gov/getcoverednj/, provides New Jersey residents with a detailed and easy-to-understand list of options. Agents are listed to ensure your doctor is online. These plans are administered through companies you know, such as Horizon Blue Cross Blue Shield and AmeriHealth. The best part is that you don’t need a Ph.D. to understand the contributions. Weird, I know.
The Price May Surprise You – In a Good Way
The cost of health insurance through the ACA, however, creates real confusion. This is another major obstacle to retiring before age 65 without health care coverage through your employer or employer. The monthly cost to you, the subscriber, depends the money you expect at home for a year you have to study. Here’s the good news: When you retire you may have less income.
For clients who retire before age 65, most of their initial savings may be in their checking/savings accounts or non-IRA funds. These are very fluid things. If this is the case, when applying for health insurance, your income may result in your premiums being much lower than you expected. Your health insurance through the ACA could be much cheaper — or maybe even free. When you retire, you can figure out where to get money. Such flexibility can help.
The registration process is simple. If you are planning to retire, this is considered a “living event,” which allows you to register and enroll during retirement.
Perhaps a Retirement Is Coming to You Later
This is not an endorsement of the ACA but a way to provide options and clarity on a topic that can be very confusing. It’s sad to see people grind out their few years of work to sell the magic number of 65. If they knew they had this option, they might have enjoyed a few more years of retirement.
If you are thinking of retiring before age 65 but think you may not be able to because of health insurance, we encourage you to do some research. The websites mentioned above are easy to navigate and understand. We have seen this strategy being used as a retirement tool earlier than expected.
We’re not health insurance experts, but we’ve seen the health insurance market mature, and you can benefit from it if you want to retire early.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Advisory services provided through Kestra Advisory Services, LLC (Kestra AS), affiliated with Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for informational purposes only and is not intended to provide financial advice or recommendations to any individual. It is recommended that you consult a financial professional, attorney, or tax advisor regarding your situation. To view the CRS form visit https://bit.ly/KF-Disclosures.
President and Founder, Reich Asset Management, LLC
T. Eric Reich, President of the Reich Asset Management, LLCis a Certified Financial Planner™, holds his Certified Investment Management Analyst certification, and holds the Chartered Life Underwriter® and Chartered Financial Consultant® designations.