Retiring Young
Things to think about if you're able to retire at an early age.
By Nathaniel Brengle
If you’re eligible for full, normal retirement at a young age, there’s a lot to think about. Do you plan on starting a 2nd career? What are your plans for health insurance? How long might you need to wait to access personal savings or Social Security? We’ll take a quick look at each of these elements to hopefully point you in the right direction.
For our purposes, we’ll define “retiring at a young age” as retiring before age 65, as 65 is when most are eligible for Medicare - a big factor for most when thinking about retirement.
Health Insurance
Many don’t realize how expensive health insurance can be when they aren’t yet eligible for Medicare, and they don’t have an employer subsidizing their health insurance. To give an example of the possible disparity between Medicare-eligible and pre-Medicare medical insurance rates: for plans offered through the ASRS in 2021, premiums range between $0 and $67 a month for a single-coverage Medicare plan (aka, a plan that covers only you – no spouse or dependents) while rates for single coverage non-Medicare ASRS retirees are between $775 and $1,361 a month1. That’s a huge difference and one that catches a lot of people off guard!