Retiring early? Know your health care choices
Article 5 – May 9, 2022
Life doesn’t always …
Life doesn’t always go as planned. For example, you might think you’ll retire at 65 or later, when you’ll be eligible for Medicare. But if you retire before then, how will you pay for your health care?
Without insurance, you risk incurring thousands of dollars of expenses if you are injured or become seriously ill. And if you must pay for these costs out of pocket, you might have to dip into your IRA, 401(k) or other retirement accounts earlier than you had planned – which could result in a less desirable retirement lifestyle than you had envisioned.
What, then, are your options? It depends on your situation, but here are four possibilities:
If you have options for health insurance, you’ll want to take into account differences in coverage and cost. Check whether your desired health care providers are in-network and try to determine if your current medications and the benefits you rely on are covered. You may also want to consider a plan that allows you to open a health savings account (HSA), which offers potential tax benefits. To contribute to an HSA, you must be covered by a high deductible health plan (HDHP), so there’s that cost to consider, but if you’re in generally good health and you don’t expect to depend heavily on your health insurance until you’re eligible for Medicare, you might want to consider an HDHP.
One final note: Even when you do enroll in Medicare, you will still incur expenses for premiums, deductibles and co-pays, so you’ll want to budget for these costs in your overall financial strategy.
In the meantime, explore your health insurance options. The future is not ours to see – so you’ll want to be prepared for anything.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member SIPC