RETIRING EARLY? NAIL DOWN HEALTH INSURANCE

If you're thinking about quitting before age 65, make sure you know your options for health care coverage.

- LISA GERSTNER

If you’re 65 or older when you retire, you can rest easy knowing that you’ll be eligible for Medicare. But if you want to leave the workforce earlier than that, you’ll have to find a way to bridge a health insurance gap. The average retirement age in the U.S. is 61, according to a 2022 Gallup survey.

If you’re planning to retire before Medicare kicks in, you may be able to make moves now that could lower your income early in your retirement, helping you to qualify for a tax credit for the premiums you pay for an Affordable Care Act (ACA) plan. Investigating what you may pay in premiums and out-of-pocket costs will give you an idea of how health insurance will fit into your retirement budget. As you compare plan choices, check the premium, annual deductible, co-payment amount, out-of-pocket maximum and level of prescription-drug coverage for each. Also consider the provider network. If you want to use certain physicians or facilities, try to get on a plan that covers your preferred providers.

GET ON YOUR SPOUSE’S PLAN