Thinking About Retiring Before 65? Factor in Health Insurance

Read Time / 2 Minutes

Theme / Retirement

Many Americans talk about retiring early; it seems to be part of our American ethos.  We may be motivated by a sense of accomplishment or to pursue new endeavors, but we need to factor in health insurance before making the leap.  Medicare is available starting at age 65, but what are the health insurance options for retirees under 65?  It is a question that we should not take lightly as 1 Timothy 5:8 instructs us to “provide” for our family.

According to the American College of Financial Services, here are the best health insurance options for retirees under 65:

• For a small number who have retired because of a disability, they may be entitled to Medicare.

• For those with income near poverty level, they could be eligible for Medicaid as well.

• Some may be eligible for employer-provided retiree medical insurance, although this group is getting smaller each year.

• If an individual works for an employer with 20 or more employees and has health insurance at work, under COBRA they are allowed to purchase continued coverage.

• If the spouse is still working, the best option may be coverage under the spouse’s plan that may be subsidized by the employer.

• Since Health Care Reform, purchasing insurance is a more viable option either through the State and Federal exchanges, referred to as the Marketplace, or through the private insurance market. 

Follow these steps to identify the best health insurance coverage options:

1.       Identify gaps in coverage.

2.       Identify available sources of coverage.

3.       Consider the needs of both spouses and any dependents.

4.       Compare the details of the available options.

As Christian Financial Advisors, we want to help you be a good steward of what the Lord has entrusted to you.  We encourage you to consider your health insurance options before you make the decision to retire early.  If you are a follower of Christ, you should also investigate Christian Healthcare Ministries (CHM), which is a faith-based alternative to health insurance.  It’s a membership-based, nonprofit ministry.  As part of a biblical covenant, CHM members step in and help fellow brothers and sisters in Christ pay eligible medical bills according to the CHM guidelines.  Learn more at https://chministries.org/

Doug Hanson, MBA

Wealth Advisor

208.697.3699

doug@christianwm.com