Retiring at 62 Means 3 Years Without Medicare or Employer Coverage

"Retiring before age 65 means losing employer health coverage before you qualify for Medicare. That gap creates one of the biggest financial risks in early retirement. Healthcare costs have accelerated sharply in recent months, creating a more expensive environment for early retirees. Medical services are outpacing general inflation, with overall healthcare spending up 6.9% over the past year. This acceleration means healthcare now claims 17.1% of every consumer dollar-a growing burden that makes the coverage gap between retirement and Medicare eligibility increasingly costly to bridge."

"COBRA preserves your existing employer plan for up to 18 months after leaving, but at a steep cost-you'll pay the full premium your employer previously subsidized, plus administrative fees. This typically means several hundred dollars monthly for individual coverage, making it one of the most expensive bridge options despite its continuity benefits. ACA marketplace plans offer an alternative, especially if your retirement income qualifies you for subsidies."

Retiring before age 65 causes loss of employer health coverage until Medicare eligibility at 65, creating a substantial financial risk for early retirees. Healthcare costs have accelerated recently, with medical services outpacing general inflation and overall healthcare spending up 6.9% year-over-year. Healthcare now consumes 17.1% of consumer spending. Employer coverage usually ends upon retirement, so a retiree leaving at 62 faces up to three years without workplace insurance. Common bridge options are COBRA and ACA marketplace plans. COBRA extends the employer plan up to 18 months but requires payment of full premiums and fees. ACA plans may offer subsidies based on retirement income as inflation pushes premiums higher.

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