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Heck I could probably swing retirement NOW, if I didn't have to pay for health insurance.
Yup, that's a big nut to crack. If a person has enough time to plan for it, they can work things out to get ACA credits (using Roth accounts and taxable accounts) even with a high net worth. Of course, there is a risk that the credit system could be changed after one retires, adding a huge "surprise" expense.
It's a very rare thing to retire before Medicare age.
Figure a way to avoid the HI & Medical risk and the question changes quickly.
I don't have any numbers, but my sense is it's not rare. I see plenty of people posting here on CD who are getting health insurance through their employer or a previous employer. Quite a few are retiring in their 50s. I hope they appreciate how great an asset that is, even if they have to pay 100% of the group rate premiums.
For myself, I can use Cobra to cover 18 months, which is vastly cheaper than buying coverage through a health exchange. That gets me to age 63.5. Anything before that I'd have to be purchased on the open market or through an exchange.
hiker, this is just me,
But I would't touch ACA right now. (I know ACA isn't the insurance itself.)
And I know people who got their insurance through the exchanges.
Personally I just didn't want to be bothered with it....not knowing what premiums would be from year to year, not knowing which insurers would pull out of the exchange, having to pick a new policy level every year....forget that.
And I didn't trust that it wasn't going to change...and look at how premiums have climbed. So I'd rather just work and get my insurance that way.
IF, IF I were rich and could finagle like some do to get it...well THEN, I might.
Because those people can afford the coverage without the ACA exchanges...they're just using an avenue at their disposal to get subsidies.....again....subsidies they technically don't need and could do quite well without.
But me, I'm NOT that well off, so premiums would take up too much of my monthly nut -- and I likely WOULDN'T get a subsidy so and since I can't afford insurance without a subsidy....alas, I'll work until 65!
My day to day expenses are much lower, less gas since there is no commuting to work, no new clothes to speak of, no lunches out at work, no contribute to this or that at work.
Overall costs, I do not pay for the: 15% of my salary for the IRA -like retirement savings plan,
10% since now I do not pay state taxes
about 12% my share of social security, Medicare, pension, and union dues that I do
not pay now
So about 37% of my salary was previously 'taken' before I ever saw it and now I do not have those expenses. THAT is a major thing to consider when planning for your retirement and doing budgets.
However, over all my expenses are quite high as I have traveled a lot. A western Caribbean cruise, a beach vacation, 3 trips back to CA (realty related and ill relative), trip to Hawaii for 2 weeks, cruise to Alaska with land vacation too coming up. Most was planned and budgeted for (not the ill relative).
I do plan on traveling when I can, while I can, and budgeted for that!
To me, if I'm trading one expense for another....I still need the same amount of money.
I don't care how the net is calculated I'd still need a given amount.
The percentage allocated to things may change -- but the bottom line is the same. (Due to lifestyle choices, of course.)
I had a kid late in life and am a single parent, so I've got another decade of significant child rearing expenses ahead of me, and then would like some time to play catch up on savings for a more comfortable retirement.
And I've got a job I genuinely enjoy but which is not physically taxing and hopefully I'll be able to continue in for that length of time.
hiker, this is just me,
But I would't touch ACA right now. (I know ACA isn't the insurance itself.)
And I know people who got their insurance through the exchanges.
Personally I just didn't want to be bothered with it....not knowing what premiums would be from year to year, not knowing which insurers would pull out of the exchange, having to pick a new policy level every year....forget that.
And I didn't trust that it wasn't going to change...and look at how premiums have climbed. So I'd rather just work and get my insurance that way.
I hear you, and I agree. I'm fortunate that my employer offers good, affordable health coverage. Even the cost of Cobra for me would not be terrible, so getting to age 63.5 would eliminate having to deal with private insurance entirely. My wife is a little older, so she'll be at Medicare age before me.
But me, I'm NOT that well off, so premiums would take up too much of my monthly nut -- and I likely WOULDN'T get a subsidy so and since I can't afford insurance without a subsidy....alas, I'll work until 65!
I went on Medicare March 1 and it's a huge relief to the budget. My old insurance would have run $1250 a month and now I'm down to about $350 a month which will drop more once I stop working.
Before Obamacare I paid about $400 a month so this is getting it back to a decent cost.
hiker, this is just me,
But I would't touch ACA right now. (I know ACA isn't the insurance itself.)
And I know people who got their insurance through the exchanges.
Personally I just didn't want to be bothered with it....not knowing what premiums would be from year to year, not knowing which insurers would pull out of the exchange, having to pick a new policy level every year....forget that.
And I didn't trust that it wasn't going to change...and look at how premiums have climbed. So I'd rather just work and get my insurance that way.
IF, IF I were rich and could finagle like some do to get it...well THEN, I might.
Because those people can afford the coverage without the ACA exchanges...they're just using an avenue at their disposal to get subsidies.....again....subsidies they technically don't need and could do quite well without.
But me, I'm NOT that well off, so premiums would take up too much of my monthly nut -- and I likely WOULDN'T get a subsidy so and since I can't afford insurance without a subsidy....alas, I'll work until 65!
I retired almost four years ago at age sixty-two. I was fortunate enough to be able to have coverage through my former employer. My expense for that was almost identical to what my current medicare/supplement/drug coverage premiums are.
I am so very glad I never had to deal with the ACA/exchanges.
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