Health care and associated costs are generally substantial retirement expenses, so it’s important that you have adequate health care coverage after you retire. If you retire before you are eligible for Medicare, or if you know you won’t have retiree health insurance, you may need to purchase coverage. Researching your options now may help secure coverage and save money later on.
So, if you plan to retire early, make sure you have health insurance in place. If your employer provides retiree insurance, this should be an option you consider. If you don’t have access to retiree health insurance, you may be able to continue coverage with your current plan — but only for a limited time — through COBRA benefits. Once COBRA ends, you may have the option of converting from a group policy to an individual policy, or you can look into securing coverage on your state or the federal health care exchange or elsewhere.
You still may need supplemental insurance, or “Medigap” coverage, when Medicare coverage starts at age 65 to help with expenses that Medicare doesn’t cover fully. There are a number of insurance companies that are authorized to provide coverage from state to state. Carefully research the companies and their plan features and assess your health care needs before choosing a policy.
Discuss your plans for retirement with your professional advisors in more detail to help determine the best options for your circumstances.
Retirement is a much-anticipated time of life — make the most of it.
