Want to Retire at 55? Healthcare Could Cost You $950 Monthly

Thinking about retiring early? You might want to sit down for this one. A reader asked about retiring at 55, but there's a $950-per-month problem standing in the way.

Here's the catch: If you retire before age 65, you can't get Medicare (the government health insurance for seniors). That means you'll need to buy your own health insurance for 10 whole years. And it's not cheap.

The Cold, Hard Numbers: • Health insurance through ACA (Affordable Care Act, also called Obamacare) could cost around $500-950 per month • That's $6,000-11,400 per year just for basic coverage • Prices are going up 15-20% in 2026 because government help (subsidies) expired • About 7.3 million Americans might lose coverage due to these price hikes

Your Options Before Medicare: • COBRA - Keep your work insurance for 18 months (but pay the full price, which is expensive) • ACA Marketplace - Buy insurance through the government website • Medicaid - Government insurance for low-income people (if you qualify)

The reader also worried about long-term care costs (like nursing homes), which Medicare doesn't fully cover. These can cost thousands per month.

The Bottom Line: Early retirement sounds amazing, but healthcare costs can eat up a huge chunk of your savings. Before quitting at 55, make sure you've saved enough to cover $100,000+ just for health insurance until Medicare starts. Consider talking to a financial advisor to crunch the real numbers for your situation.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/im-not-interested-in-long-term-care-insurance-id-like-to-retire-at-55-how-much-will-i-have-to-pay-for-healthcare-a4659d9b?mod=mw_rss_topstories