The biggest worry for me in (early) retirement is health care costs. I tried putting in some fictitious numbers and was flabbergasted at the premiums for a 57-yr old (I’m currently 49). But then I put in a fictitious $30K income and all of the sudden I wasn’t paying for my health insurance anymore! (Actually I wasn’t completely flabbergasted because our employer makes a point of telling us what they spend on our health care each year and it ain’t cheap)
I’m several years away from retirement, but I’d like to make sure my current-day knowledge of health care subsidies is correct. My current AGI is a 6-digit number, but for the purposes of retiring early and paying for healthcare, it is advantageous to lower that AGI to a specific number.
“That’s good news across the board for early retirees who need to purchase medical insurance through Marketplace exchanges to bridge the gap from employer-provided coverage to Medicare.”
According to the article above, if my AGI is under 150% of the federal poverty level (FPL) then i should be expected to contribute 0% of my income towards health care. Assuming a 2-person household, the threshold would be 17,420 x 1.5 = $26,130. The income contribution requirements would be:
AGI / Contribution / Contribution $
150% => 0% @ $26,130 = $0
200% => 2% @ $34,840 = $697
250% => 4% @ $43,550 = $1,742
300% => 6% @ $52,260 = $3,136
400% => 8.5% @ $69,680 = $5,923
So if in my last year of work I arrange to work part-time in 2027 and file an AGI of $43,550 for the year, I should only be expected to pay $1,742 for my healthcare the following April 2018 when I quit? And in future years the amount I pay would be influenced by the mix of Roth and non-Roth amounts I withdraw?
Of course, the big question is will it stay like that? Just wondering, do I have my facts reasonably straight? $1,742/yr vs $1,742/mo could definitely move up my retirement date.