Want to Retire Early? Here’s How to Lower the Health-care Barriers

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Want to Retire Early? Heres How to Lower the
Health-care Barriers

• Early retirement is a dream many people have, but
  one of the biggest barriers they face in deciding
  if or how to retire early is health care.
• Most Americans are eligible to enroll in the
  federal of retirement planning delaware
  Medicare program at age 65. But retiring before
  age 65 leaves many people at odds over how to pay
  for health care costs and how to access health
  insurance coverage. During their working years,
  many people rely on their employers for health
  insurance.

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What are the options for people looking to
leave the workforce and retire before age
65, when Medicare eligibility begins? First,
if you are currently enrolled in a
workplace health care plan that offers a
Health Savings Account (HSA), contribute as
much as you can while you are still working. In
2022, annual HSA contribution limits are 3,650
for an individual and 7300 for a family.
If you are over age 55, you can make an
additional 1,000 catch-up contribution this
year.
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HSA contributions are TRIPLE tax free they
reduce your federal and state tax liability and
are not subject to FICA taxes. The key is not
to spend HSA savings while you are
working. HSA funds can be used to pay for
any medical or health- related expenses,
including doctor office visits, dental and
vision care, prescriptions, hearing aids and
more. You cant use HSAs for health
insurance premiums, but you can for Cobra
insurance after your separation from service
from your employer. Second, your Roth IRA can be
a source of funding to pay for health care
costs or health insurance premium.
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Next, review what subsidies or tax credits may be
available to you based on your state of
primary residence. Some people find their lower
income in retirement qualifies them for
subsidies and tax credit they were not
eligible for previously. Visit healthcare.gov
or call 1-800-318-2596 to see your
options. Another option to consider is for
you or your spouse to work part-time at a
preferably low stress job that offers health
insurance coverage. Some major companies
offer this-Costco, Whole Foods, Lowes,
Starbucks and Staples, to name a few.
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plan with a lower
Finally, consider an individual health insurance
catastrophic coverage, which often come with
premium. When you pair this coverage with
a well-funded HSA, you can cover your
insurance premium out-of-pocket then tap your
HSA for any costs not covered by the
catastrophic plan. With any decision on
health care and insurance, remember your
options are dependent on your health,
geography and funding sources. If early
retirement is your goal, its important to plan
ahead and have conversations with your
financial advisor many years before you retire.
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Contact Us
Learn more about your retirement options.
Schedule an appointment with one of our financial
advisors.
www.affinitywealth.com
msicuranza_at_affinitywealth.com
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