I'm curious how you factored in "rising" healthcare expenses in your calculations.
I think it's assumed that a properly invested nest egg can keep pace with inflation, but healthcare costs seem to outpace inflation. I'm trying to plan for this...
So let's say that I can ER at age 40 with 33x expenses saved, and a 50k annual budget that has been tested and reflects reality. This budget includes ACA premiums for 40-year-old-me, and typical out-of-pocket expenses for 40-year old me. (same for spouse)
Here are some options I've considered:
1. Assume healthcare costs will rise more quickly than inflation, my portfolio won't keep pace, therefore continue to work until I have extra $$ (how much?) for health expenses in my 50s, 60s, and onward.
2. Because I'll be entitled to SS benefits at age 70 but have not factored that into my plans, assume that those dollars will cover any extra healthcare costs.
3. Retire as planned, knowing that the 15k in the budget for fun stuff (travel, eating out) can be used for healthcare if needed - down the road.
Curious how others have done this, or what you'd suggest.