‘I can’t retire – I need health insurance’

It’s one of the reasons people refuse to retire before age 65. There are many reasons why a person does not retire, including lack of income, fear of running out of money, lack of identity, boredom, and not being there anymore. A sense of purpose. One of the most surprising things we face is health insurance. As we age, having health insurance becomes just as important as income. Some consider it a high priority to let insurance determine when/if they can retire.

You can start Collecting social security The age is 62 or late until 70. However, you can’t Go through Medicare Up to the age of 65 years. The gap between 62 and 65 forces many early retirees to delay their retirement until they can go on Medicare to make sure they have enough health insurance. But this may not be the case.

Enter Obamacare

On March 23, 2010, the Affordable Care Act (ACA) was enacted to ensure that all Americans are entitled to health insurance. This new law came with much criticism and confusion. At the time, many critics of the ACA concerned higher premiums, lower coverage levels, increased taxes, and limited enrollment.

12 years later, we have a better understanding of the ACA and how it benefits us all, 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 usually not positive. People think that insurance coverage is terrible and expensive. This is far from the truth. The ACA has been well-developed since its inception and gives you control over how much coverage you want and need.

Home State Program Website; www.nj.gov/getcoverednj/, provides New Jersey residents with comprehensive and easy-to-understand coverage options. The providers are listed so you can check if your doctor is in network. The plans are managed by familiar companies like Horizon Blue Cross Blue Shield and AmeriHealth. The best part is you don’t need a PhD. To understand the sacrifices. Shocking I know.

Residents in other states can learn about their options at healthcare.gov or get information about their state program by visiting www.healthcare.gov/marketplace-in-your-state/.

The cost 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. It depends on the monthly cost for you, the subscriber. Your expected family income You need coverage for the year. Here’s the good news: You may have less earned income in retirement.

For clients retiring before age 65, most of the money they will initially live on may be in their checking/savings account or non-IRA. These are their most liquid properties. If this is the case, when you apply for health insurance, your low income may result in your premiums being much lower than you expected. Your health insurance through the ACA may be at a significantly reduced cost — or it may even be free. You can determine the sources of income during retirement. Such flexibility can help.

The registration process is simple. If you’re planning to retire, that’s considered a “life event,” making you eligible to apply and enroll in retirement.

Maybe retirement is on your way

This is not a justification for the ACA, but a way to provide options and clarity on an uncomfortably confusing topic. It’s sad to see people grind away their last few years of work to hit that magic number of 65. If they knew they had this option, they’d probably enjoy a few more years in retirement.

If you are planning to retire before age 65 but think you won’t be able to because of health insurance, we encourage you to explore this option. The websites mentioned above are easy to navigate and understand. We have seen this method as an effective tool to retire earlier than expected.

We’re not health insurance experts, but we’ve seen the health insurance marketplace mature nicely, and you can take advantage of it if you want to retire early.

Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment advisory services provided by Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Rich 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 general information only and is not intended to provide specific investment advice or recommendations to any individual. It is recommended that you consult your financial professional, lawyer or tax advisor on your individual situation. To view Form CRS, visit https://bit.ly/KF-Disclosures.