"“I'm afraid to look at it given what's going on. I think it would have been okay last year, but now what's going on with the subsidies gone, and I think it's gone up quite a bit.”"
"“If Louise leaves her job at 56, she's staring down nine years of self-funded health coverage before Medicare kicks in at 65, and that bill now lands on the open market with diminished premium tax credits.”"
"“A realistic unsubsidized ACA premium for a family in their mid-50s now lands in the $25,000 to $35,000 range annually, and out-of-pocket maximums push the worst-case closer to $45,000.”"
"“A simple Treasury ladder across her retirement assets throws off roughly $130,000 to $140,000 a year in risk-free interest before she touches a share of stock. Even after carving out $35,000 for premiums and another $15,000 for out-of-pocket maximums, she still has room to fund retirement.”"
A 56-year-old with $3.2 million in retirement accounts, $430,000 in taxable stocks, $200,000 in 529 plans, and $65,000 in cash fears retiring because healthcare costs have risen after subsidy changes. Leaving work would require about nine years of self-funded coverage until Medicare at 65, with reduced premium tax credits on the open market. Unsubsidized ACA premiums for a family in their mid-50s are estimated at $25,000 to $35,000 annually, with out-of-pocket maximums pushing worst-case costs toward $45,000. With 10-year Treasury yields around 4.4% and 5-year yields around 4.1%, a conservative Treasury ladder across retirement assets could generate roughly $130,000 to $140,000 per year. After reserving $35,000 for premiums and $15,000 for out-of-pocket costs, remaining income can support retirement spending.
#retirement-planning #healthcare-costs #aca-premiums #401k-and-ira-withdrawals #treasury-ladder-strategy
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