Early Retirement Insurance Woes

[hunt2elk]

I am nowhere near this age. However, I was informed by a coworker today that is retiring very soon that:
his wife will be on SS, but he is 59 so he won't.
Having NO INCOME means he can sign up for insurance on obamacare market for basically zero dollars.

So you might want to consider just not doing anything and getting mostly free health insurance(I mean taxes pay for it so we all do)

Working as intended! A guy wealthy enough to retire at 59 can get free insurance on tax payer dime.
I don;t blame him either, because if I can reclaim any of my tax dollars I do it too. Except i am a middle aged working shmuck so I can't.

Yeah, I actually know a couple people that are doing just that. Living off their savings and Roth IRA's until they hit 65. Heath insurance is free for them. That is what our financial adviser is trying to talk me into. But that is just not the way I am wired. I would go crazy sitting around watching Gunsmoke all day long.

 

[KrzySRT]

My wife and I are both 62 and we both have gov't pension plans. Neither of our agencies offered access to retirement plans, My agency had sick leave conversion that allowed retirees to use a set amount of unused sick leave hours, to be converted into an annual cash deposit into a HSA. Our minimum retirement ages were 55, but we had to wait until we were 61, to have enough sick leave hours to last until we were 65 and eligible for Medicare. My employer deposits $12,000.00 annually, but our Medical insurance is costing us $1.755.00 a month or $21,000.00 this year and will prob go up for 2025. without that contribution, we would have either had to defer retirement to 65, or both of us work part time to cover the cost. retirement is expensive LOL

 

[zyzzyx]

We all have different benefits so it's important to do research before the end so we can
plan accordingly. I have my pension from G.E., Social Security, and my Wife's Social Security.
Medicare A and B, and Plan F "Select" for a supplement. The Plan F costs us $248.00/Month.
Luckily we don't need to touch any of our savings for health care. We just don't know what's
coming down the pike! Hope everything works out. Do your homework.

 

[QuickBpBp]

Insurance is a joke these days. The Unaffordable healthcare system has been destroyed for the middle class. Good luck as it's a LARGE chunk of change these days not to mention I don't even think you can get insurance right now as "enrollment" has ended. Don't know how it works if you lose it after that period if you can get enrolled at any time...

 

[zyzzyx]

The bottom line for me is I'm a Chicken! I'd rather pay the $248.00/Month premium and go to any Doctor without
a referral and it covers ALL of my deductables and NO copay. If I cheaped out and got an Advantage plan, the first
time I had a big emergency health problem I'd be bankrupt! 20% of $400,000.00 is 80k, and that would be my deductable.

 

[dadsbee]

Self employed?.. and "retired"! Pay your kids and have them hand you the " net" in cash so that you have zero taxable income......

 

[1967coronet]

The bottom line for me is I'm a Chicken! I'd rather pay the $248.00/Month premium and go to any Doctor without
a referral and it covers ALL of my deductables and NO copay. If I cheaped out and got an Advantage plan, the first
time I had a big emergency health problem I'd be bankrupt! 20% of $400,000.00 is 80k, and that would be my deductable.

Simular here, my wife is a couple years older than me and was able to get on plan F,
Last year when I got my supplement started ( F) was gone. Those that have it can keep it forever but there was no more sign ups.
I went with G , it's the same as F but does have a yearly deduct of $243.
I have foot surgery coming up next month. That $243 looks pretty reasonable.

 

[Hey-O]

Talks cheap and I do a lot of that! The fact is, ONE of the reasons I went to work at Chrysler was, I had a plan and it was to retire at 59 with thirty years of service and ALL my benefits. My boss, when I was a furniture maker told me I'd never make furniture again at a car factory, losing my true identity. I never told him that my true identity had nothing to do with a job, but rather a goal and my job was my ride to that goal. Did I like my job, of course I did, but it was my ride to my goal that I've had since the first day I woke up next to Theresa. When the plant closed and I was asked to move to a new location or take a package and go home, I went home, I was 52. It's true, I got a pension, not much for 23 years versus 30 and out, but it was never about the pension or money, I had that in place, it was the insurance. They carried Theresa and I to 65 and they are still my supplement to this day. It's expensive to buy and I'm grateful to be an ex autoworker. That why I'm very loyal and my daily driver will always, ONLY be a Chrysler........... Ulli

 

[j-c-c-62]

1. Anyone not a millionaire loves SOCIAL Security
2. Nobody not a millionaire ever refuses Medicare at 65
3. Its reported 50% of your lifetime medical costs are spent in the last two years of your life.
4. Many health issues are exacerbated by delayed medical treatment because of lack of affordability or inadequate insurance.
5. Medicare at 55 would solve 90+% of the issues others have shared above.
7. It's time we caught up with the rest of the civilized world.
8. I'm saddened by many of the stories shared here.

 

[MarPar]

Self employed?.. and "retired"! Pay your kids and have them hand you the " net" in cash so that you have zero taxable income......

SHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!! lol

 

[Krooser]

I was self employed when I took social security at age 62.

I took pt job with medical benefits.

 

[GetX'd]

I was self employed when I took social security at age 62.

I took pt job with medical benefits.

That my man is exactly the way to go. If needed I would also have done so to solve this issue. I’m just lucky w/a younger wife and having her Bennie’s in spite of being medicare eligible for 5 yrs - I’ll use then until no longer available. Personally I think the OP would be best off doing this.

 

[XS22J8R]

I've been giving a lot of thought to retirement and haven't managed to get off the fence on that. I'm not getting anything out of my career anymore but really haven't figured out what I'll do with myself if I was retired. Working and making money has been a big part of my life since I was maybe 13 or 14, and being in a situation where I don't need to make money anymore is not how I'm wired, with the habits and patterns formed over the last almost 5 decades.
Medical insurance is another big issue. I can get Cobra through work but that only goes for 18 months. I was thinking of retiring in 2019 and even had some semblance of a "plan" for what I'd do, but 2020 changed a whole lot of things for me unfortunately. At that time I'd checked at work and continuing insurance was over $600 a month, but I'm sure that has increased a lot since then, maybe 800- 900. Or even more. I need to find out. And 18 months still leaves some time until Medicare eligibility, not a lot of time but still a year and a half maybe.
And my work's insurance gets worse every year it seems. I end up paying up thousands of dollars in copays and deductible every year even with insurance.
The whole situation with health care gets worse every year in general too, and that leaves me feeling discouraged. My providers are through a health network in the fairly affluent Chicago north and northwest suburbs, but even being in an upscale area, doctors seem to be leaving them regularly. My primary care doctor left them last year, after 29 years, and now is with one of these concierge practices. I see posts pretty often on the "nextdoor" busybody social media site about people going to that networks ERs and sitting there 8 or 10 hours before they get attended to, and even seeing other patients collapse and fall on their faces in the ER while they wait. It sounds like something out of the 3rd world!
I really am starting worry our whole health system is going to collapse, as working in health care has become something few want to do, meaning that we don't have the resources to provide for everyone anymore. There doesn't seem to be any good answer I have seen. Given the amount of hubris that seems epidemic in most people these days, everyone seems to think they have it figured out and what a good answer would be, but everything I see looks either bad or worse.
Pretty discouraging situation for people like me pondering retirement!

 

[j-c-c-62]

Maybe, but the problem you describe is here, there are other parts of the world that have health care figured out, of course at a "price".
So, pick "your poison"

Edit:
3rd Qtr of 2023, bottom 50% of US wage earners owned 2.6% of the nation's wealth, average of $50K, do the math on what the rest might own.

 

[GetX'd]

Maybe, but the problem you describe is here, there are other parts of the world that have health care figured out, of course at a "price".
So, pick "your poison"

What other countries are you referring too? Maybe Scandinavia - but don’t kid yourself their incredible tax burden has them paying for it either way - And socialized med is not the answer either. Obviously the US system is a mess - and made exponentially worse by the disregard for the incredible flow of undocumented and the way that scumbag obummer sent us further down the river…. But who do you feel has it figured out? It sure as hell isn’t our good brothers to the north or they wouldn’t be coming here and paying out of pocket for treatment - The EU or Britain …. Not on your life.
Who?

 

[1967coronet]

1. Anyone not a millionaire loves SOCIAL Security
2. Nobody not a millionaire ever refuses Medicare at 65
3. Its reported 50% of your lifetime medical costs are spent in the last two years of your life.
4. Many health issues are exacerbated by delayed medical treatment because of lack of affordability or inadequate insurance.
5. Medicare at 55 would solve 90+% of the issues others have shared above.
7. It's time we caught up with the rest of the civilized world.
8. I'm saddened by many of the stories shared here.

The catch to that is you do not know when those last two years are coming.

My wife's brother just passed the 15th of this month.
Cancer , he was 65.
He had his medicare as I understand it his supplement was his wife's insurance from her employer.
He spent his last 3 weeks in the hospital.
His cancer was discovered 3 months ago.

 

[GetX'd]

1. Anyone not a millionaire loves SOCIAL Security
2. Nobody not a millionaire ever refuses Medicare at 65
3. Its reported 50% of your lifetime medical costs are spent in the last two years of your life.
4. Many health issues are exacerbated by delayed medical treatment because of lack of affordability or inadequate insurance.
5. Medicare at 55 would solve 90+% of the issues others have shared above.
7. It's time we caught up with the rest of the civilized world.
8. I'm saddened by many of the stories shared here.

Medicare at 55 may or may not do as you suggest - But say it would - how on earth would such a program be even intergalacticly possible or sustainable when this **** bag govt is pretty much bankrupt on the current programs of SSI and Medicare at the current ages? Who and how is/would that get funded? Not to mention that would also mean these gazilions of illegals and umdocumented that somehow scam their way on to these social programs - And then there’s Medicaid what do you do with that - and whose going to pay for it? No dropping the age to 55, especially with lifespans increasing is fools gold. Sure it would help some that want to retire early now - But it’s simply impossible for the country to do that.

 

[XS22J8R]

Some sources I've found to be ones I trust and discuss issues pretty analytically (as opposed to emotional, I'm an engineer so analytical is pretty much how I roll) who have studied how health systems are run and funded around the world have cited Germany's as being pretty good. Healthcare in Germany - Wikipedia
But given how dysfunctional we've become, I don't see any hope for things getting any major improvements here anytime in my remaining lifetime. More like worse.
Certainly as a patient things seem to be getting worse and worse. It can take months just to get an appointment even just for a physical with a PCP.
And the costs have gotten out of control, more and more for less and less quality of care.
I mentioned how emergency rooms, around here at least, are starting to resemble what you see in 3rd world countries. My eyes hurt from rolling them so much when I watch that Chicago Med show on NBC, how the ER patients on TV get attention immediately and the team of doctors rush to care, no wait of course, and go the extra mile to treat the patients.
What universe is that Chicago in?? Pure fantasy!
Unfortunately I was hospitalized for DVT in 2020 and back twice soon afterwards for complications including a rash. It wasn't noticed when I was checking out because the nurse said she was too busy to help me clean up or dress after I asked, so I didn't see all the rashes until I took a shower after getting home. I ended up back in the hospital trying to treat and figure out the cause, I think they gave me steroids, and set me up to see an allergist suspecting antibiotics I'd been given. Then several weeks later I ended up with bleeding (aneurysm) in my other leg, and back in the hospital. I noticed the rash coming back a day or so later not long after a cat scan. Hmm, they shot me up with contrast dye for that procedure, could that be it? Why yes, they said. That was it, I was allergic to the dye, and I felt like I was the one who figured that out, not some of the hot shot docs like on TV.
And then they still sent me in for multiple sessions at an allergist just to make sure I wasn't allergic to any antibiotics too. Of course I wasn't.
I hear about a number of doctors who are hanging it up or finding ways to practice outside the private industry/government/insurance run system. Just last week I saw my podiatrist who I haven't seen in 5 years, he went from the system I am with, to a bone and joint institute, where he got burnt out after a couple years there, to a private practice. Has an office in a physical therapy facility, and splits his time between doing that here and the same that he set up in Breckenridge. He loves being a doctor but has scaled back and has found a way to continue to work outside the "machine". Lots of doctors are retiring early when they get burnt out, as are nurses, so the system is getting more and more short handed.
Due to that clot I had, I take a blood thinner which lists for over $600 a month. So with a chronic condition and an expensive med, I have a lot to be concerned about with retiring, even though on paper I'm financially secure. Saved and invested diligently for nearly 40 years and I ended up "all dressed up and no place to go" partially because I'm stuck at work for insurance.

 

[j-c-c-62]

Medicare at 55 may or may not do as you suggest - But say it would - how on earth would such a program be even intergalacticly possible or sustainable when this **** bag govt is pretty much bankrupt on the current programs of SSI and Medicare at the current ages? Who and how is/would that get funded? Not to mention that would also mean these gazilions of illegals and umdocumented that somehow scam their way on to these social programs - And then there’s Medicaid what do you do with that - and whose going to pay for it? No dropping the age to 55, especially with lifespans increasing is fools gold. Sure it would help some that want to retire early now - But it’s simply impossible for the country to do that.

So you are OK with those without medical care today in the US when many other countries have effectively Medicare at birth, is what you are saying?
I think my additional point, going without proper medical only makes issues much worse later on, you missed.
The funds are available, the will is not it seems.
I say it can be done and you say it can't, and we disagree.

 

[j-c-c-62]

What other countries are you referring too? Maybe Scandinavia - but don’t kid yourself their incredible tax burden has them paying for it either way - And socialized med is not the answer either. Obviously the US system is a mess - and made exponentially worse by the disregard for the incredible flow of undocumented and the way that scumbag obummer sent us further down the river…. But who do you feel has it figured out? It sure as hell isn’t our good brothers to the north or they wouldn’t be coming here and paying out of pocket for treatment - The EU or Britain …. Not on your life.
Who?

Did you not understand "pick your poison"?

BTW insurance is basically, here it comes the dreaded dog whistle word, cover your ears, socialized private financial shared risk.

And Medicare is not socialized medical care, its closer to single payer, big difference.