Is it Impossible to Retire Early Because of Health Insurance?

A recent article in the Indianapolis Star by Pete the Planner painted a dark picture of the possibility of early retirement because of the cost of health insurance.  While it is true that early retirement is a significant decision requiring careful planning, the situation is not as desperate as the article makes it sound.

Before the implementation of the Affordable Care Act, only healthy people could even consider early retirement unless they worked for a major corporation that offered retiree coverage.  With the guaranteed issue of coverage under the Affordable Care Act, even those with significant medical conditions can retire and obtain their own health insurance.

With regard to cost, the situation is also not so dire as the article suggests.  Since qualification for the Advanced Premium Tax Credit is based largely on taxable income and not assets, it is possible for many individuals and couples who have accumulated a nest egg for retirement to qualify for the APTC and get their monthly premium down well within their budgets.

If someone is considering early retirement, they need to consult with a qualified financial planner to map out an overall strategy.  They also need to consult with a local health insurance professional to map out a specific strategy with regard to the cost of their healthcare.  If health insurance is all that is standing between you and retirement, give me a call.