After almost 31 years at same place ready with letter at the end of the month....

[WPauley]

I have been loyal to the same employer for almost 31 years, I worked a couple places 8 years before that, part time, college jobs etc. Planning for retirement since day one. Will be 56 my next BD. As the time to turn in my letter grows closer, I am having trouble with the reality that the time that I have planned for and thought about and counted down to for the last 10 years is just around the corner.
Wife Plans to work part time 2 more years, I have hobbies, interests and property to work on and maintain, yet I still wonder if I am ready. My only concern financially is health care insurance, which I am sure is shared by many. I can lock in a Monthly rate for the next two years that is doable, but I am concerned what we will do if the costs skyrocket in two years.

Guess it boils down to... go for it and worry less OR work till I am Medicare age or closer to it.
Any thoughts or advice from the crowd? Someone please encourage me to take the plunge!!!
. My Employer would like 3 months notice. Would like to be out before Christmas and paid out by the end of the year. Job is a good one and having one of the best parking spots does have advantages, but I am looking forward to leaving my Truck in the Garage at home as well.

 

[davebarnes]

We have paid for health insurance on the open market for the last 18 years.

Before Obamacare, rates went up. Sometimes by single digits and often by double digits.
Now, I am on Medicare and the trophy wife is on Obamacare. With Obamacare, rates have gone up. Sometimes by single digits and sometimes by double digits.

I would plan on 10%/year for the next 9 years.

 

[Aerides]

Have you run Firecalc?

That should give you the financial confidence in your budget and plan. Most of us that depend on the marketplace for insurance, with multiple pre-medicare years, have to have some anxiety about the stability of HI for a while, but there's only so much you can plan for.

I believe it will get worse and then get better. Not sure how much or how long either way. But there will be a point where it gets ridiculous, and then it will correct...and then it will swing again - who knows!

If you have confidence and wiggle room in your budget, and areas of discretion you should shave in a crazy year, that should give you the margin you need to at least go with reasonable expectations.

 

[Monterey298sc]

I am 58 and would have to close and sell my business property. An am in your boat about concern I would have enough to pay for health insurance since I am self employed. When it dought , keep working until you are sure.

 

[Dtail]

Figure out your yearly expenses and run it through various retirement calculators for results.
You can also get an idea of medical expenses potential by checking out healthsherpa.com

 

[travelover]

If you can afford health insurance, you can buy younger, healthier years of retirement that will never be available again. Hard to put a price on it, but IMHO worth sacrificing for.

 

[mtheulen]

I myself have just signed paperwork for a 9/12 exit.Plan on cobra insurance for 18 months.After I will examine the ACA and also short term.If I read correctly, short term goes from 3 months to 12 months starting 10/18.This may be an option

 

[Live And Learn]

I had the same fear. My decision was to wait until I was at a 3% withdrawal rate on my invested assets after budgeting 30k per year for 2 people for Healthcare (back in 2015). My budget for healthcare is now 37k. My budget includes hitting the out of pocket maximum for both of us in a single year. It was the only way I felt "safe" enough, and despite that I continue to be concerned.

On the plus side, the bull market has been kind to me, and I do not regret my decision to ER one bit.

 

[Huston55]

If you can afford health insurance, you can buy younger, healthier years of retirement that will never be available again. Hard to put a price on it, but IMHO worth sacrificing for.

I had the same fear. My decision was to wait until I was at a 3% withdrawal rate on my invested assets after budgeting 30k per year for 2 people for Healthcare (back in 2015). My budget for healthcare is now 37k. My budget includes hitting the out of pocket maximum for both of us in a single year. It was the only way I felt "safe" enough, and despite that I continue to be concerned.

On the plus side, the bull market has been kind to me, and I do not regret my decision to ER one bit.

+1

Also, since your DW plans to work 2 yrs more PT, she should be eligible for HI. After that, she can use her COBRA coverage for another 18 mos. That means you have 3.5 yrs of ‘guaranteed’ coverage in your future no matter what. That leaves you with ~5 yrs before Medicare to plan for.

In your situation, I’d follow L&L’s advice and save enough to cover 5 yrs of high HI cost, and have an annual WR of ~3%. Too many variables to plan beyond that. However, backup plans could be:

1. If TSHTF in the next 2 yrs, DW extends PT employment for HI benefits.
2. If TSHTF after DW is completely retired, get a PT job for HI benefits.

 

[WPauley]

Thanks for all the replies. I appreciate your taking the time to comment. Bill

 

[BigE]

Have not yet retired and have the same concern for heath insurance cost. I've seen on here and Bogleheads non-ACA annual health insurance costs around 20-24ish for 2 persons. But Live and Learns budget of 37K! Surely no one pays this much?

 

[MRG]

Have not yet retired and have the same concern for heath insurance cost. I've seen on here and Bogleheads non-ACA annual health insurance costs around 20-24ish for 2 persons. But Live and Learns budget of 37K! Surely no one pays this much?

The unsubsidized cost of my silver health insurance for one is $22,200. That's before you use it. So for two?

 

[TimevsMoney]

Good insight and a reminder to enjoy today.

 

[Live And Learn]

Have not yet retired and have the same concern for heath insurance cost. I've seen on here and Bogleheads non-ACA annual health insurance costs around 20-24ish for 2 persons. But Live and Learns budget of 37K! Surely no one pays this much?

The plan I would choose has a monthly premium (for 2) of $1,859 and an OOP max (per person) of $7,350. Maximum costs is therefore $37,008.

Do I expect to actually pay that much ? For me, yes, I will hit the OOP max annually because I have macular degeneration and require injections costing $1,500 per shot; on average I get 7 shots a year. Do I expect DH to hit the OOP max annually ? I pray not, but it's possible. If we don't spend it on HC we can always use the unspent HC money for something fun in the following year. My motto is "better safe than sorry".

 

[jollystomper]

I just retired and have 5 years before Medicare. We built the bullet and built in a large reserve ($150K) in our planning for health insurance premiums and deductibles until then. We lucked out somewhat since due to the terms of my retirement my premiums stay at the employee rate through 2019. After that it either non-subsided ACA (we will earn too much to qualify for subsidy) or Megacorp retiree rates, which currently are actually less than ACA with a lower deductible. Whichever is cheaper we will grit our teeth and deal with it for 3 years. Odds are that it will be less that we forecast. It is a lot but since we are both currently generally healthy, retiring to take advantage of that health while it lasts is worth the cost.