Health Insurance for Early Retirees (Under 65)

Early retirees who leave the workforce before age 65 need to find their own health coverage. The ACA marketplace is the primary solution, with enhanced subsidies making coverage more affordable than many expect. A 62-year-old retiree with modest retirement income may pay $200-$400/month for a Silver plan after tax credits, depending on location and income.

Best Options for Early Retirees

ACA Marketplace Plans

The top choice for most early retirees. Key advantages: subsidies based on retirement income (which is often lower than working income), guaranteed coverage regardless of health, and comprehensive benefits. Manage your income carefully—Roth conversions, capital gains, and retirement account withdrawals all count toward subsidy calculations.

COBRA from Former Employer

Continue your employer plan for up to 18 months. Expensive (full premium + 2% fee) but maintains your existing doctors and coverage. May make sense for the first year if you have ongoing treatment.

Retiree Health Benefits

Some employers offer retiree health benefits. If available, compare costs with marketplace plans—marketplace subsidies may be cheaper.

Income Strategy for Subsidies

Early retirees can optimize ACA subsidies by carefully managing taxable income. Consider:

• Drawing from Roth accounts (not counted as income for subsidies)
• Timing capital gains and IRA withdrawals
• Keeping MAGI in the subsidy-eligible range

Resilience Health Advisors specializes in helping early retirees across the nation bridge the coverage gap. Plan your retirement coverage today.