A big part of the reason I was able to retire early was having family retiree medical available (wife’s retirement benefits). It took a lot of the planning risk for healthcare expenses out of the picture.
Healthcare is one of the biggest reasons why I hope to work until 65. If not full time as an actuary, then at least in a job with health insurance access. I’d love to simply not work, I’m not one of those “don’t know what I’d do with myself” types, but I doubt I’ll be able to afford it until then.
1k a month at 50? High deductible? 3k in my 60s?
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Could be. But I am not going to do the legwork on the internet for you.
Location will be key, as well as your personal and family history. And your $1k, 3k is still low. A good set of new eyeglasses will go over budget for the month. As well as a dental crown. Or just about anything, frankly.
Location: I advise looking at an urban area…look for metro areas with good mass transit and (hopefully) a teaching hospital. I chose Seattle, to be close to family. Not the cheapest, but I had obvious personal preferences.
The advantages are many. Travel is easier than in a rural or suburban locale, providing good air travel without multiple connections. Entertainment comes to you and is often just a taxi ride away. I recommend a nice building with a concierge. The ease of living means I can postpone the final move to a retirement community for as long as possible. Seems morbid, I know, but that’s the reality. And the walk ability in an urban area means I can step out the door and walk to many restaurants, 4 museums, and a bunch of many yertainment venues. Walking is your friend. Driving is your enemy.
Just sharing my own lived experience. Perhaps it can help.
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Fortunately the only significant health care cost I need to worry about is if I end up in a nursing home. Most major medical expenses are covered under our system without a premium or deductible. Medical expenses didn’t really factor into the timing of my retirement.
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There is no guarantee that ACA subsidies will continue, so that is some added risk.
But for now, a family of two can get subsidies if your income is below about $80k. My plan is to have the house paid off and be pulling some from brokerage. Since only the gain portion counts as income you can actually withdraw >$80k and keep income lower.
I need to learn a lot more about how all of this works but I think my wife and I could pull out $100k/yr or so and pay low taxes and get some help w ACA premiums.
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I thought they had already been sacked for next year.
I thought they were still there but the phase out above 400% FPL is now a hard cliff.
Wasn’t sure of details on what I’d heard, just that there were some subsidies removed for 2026. Will have to pay attention when 2nd child ages out of my plan while in med school, but that’s still a while out.
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Look very closely at how to manage your MAGI in order to maximize ACA subsidies (or qualify for Medicaid if you want.) You can make your income whatever you want it to be with Roth accounts and Roth conversions.
Though work requirements may get in the way of using Medicaid - TBD, everything is up in the air.
I listen to a podcast with a comedian who recently turned 60 and is having to pay for health insurance in California for his wife and 2 kids and I think he’s paying $50k to $60k/yr…
a relative of mine, 70 years old, in the USA, had to pay a little under 23K a year just for himself (he was a noncitizen and not eligible for Medicare or Medicaid).
The low deductible ACA plans look to be around 800 a month at age 55 in my zip code. High deductible about 500 a month. My credit with 50k income is 350.
They all seem to have an oop max of 7-9k.
1-2k a month seems like a reasonable range.
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Sigh, okay how much did it cost you
The math checks out
With health insurance coverage the only way you can really run up the bill is paying for experimental treatment like sauna treatments for chronic Lyme disease
Otherwise once you hit your oop max, well get everything done asap and buy up next year during open enrollment
There is another option for funding your healthcare.
My FIL’s first cousin, Juliet Bernstein, was featured in The Guardian a few years ago. Juliet was a lifetime activist so her well-publicized GoFundMe was a form of protest as well as necessary funding. She died a few months after the article was written (at 108).
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Sort of. Capitalism provides a nearly unlimited opportunity to try and turn dollars into happiness. If you aren’t being critical of the choices you make to understand the return on this spending you can end up in a really expensive lifestyle that isn’t serving you very well.
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3200/ mo. I rent.
Had a budget of $50k for the physical move.
Sorry if that offends you. Sigh.
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I will most likely retire in five years - age 70
I have (I believe) enough to step away now if I need to, but
I get 35 vacation days a year and use them, great work life balance
Seven step commute - don’t set an alarm
Live four blocks from the Atlantic Ocean, nice boardwalk walk in the mornings
Like the work, like my clients
Why not work as long as they keep paying me
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