Too old for "early" retirement?

[RetMD21]

Hello all, I'm 62, wife is 59 and I am looking at retiring in a year and a half. I like my work but there isn't a semi-retirement option and I am getting tired of full time. Our investments are in low cost funds and some stocks and our spending wold be substantially less than 4%. My main concern is finding health insurance for the pre-medicare period and ensuring that we can get supplements without underwriting. We plan to relocate from the Midwest to someplace warmer. I have been lurking around early retirement forums for years trying to absorb the wisdom but I haven't posted much. I feel like I am retiring late by forum standards. Anyway, I'll go back to reading.

 

[Bamaman]

You're never too young or never too old to retire.

While you're in the discovery period, go online to where you're wanting to retire to and price out healthcare programs. You don't have to move there yet to investigate future costs. It can certainly help you make an informed decision.

 

[athena53]

Welcome to the club! I didn't retire all that early, either- I was 61- but I've learned so much from this group. Given what happened to my ACA premiums in the 4 years between retirement and Medicare (started at $450/month and doubled over 4 years), I can understand your concern about health insurance.

 

[MRG]

I don't think there's any age requirement.

One thing some will tell you its good to plan your taxable income every year. That assumption is based upon ACA staying in it current state..

Best wishes to you.

 

[VanWinkle]

Try to think ahead to control income by creating multiple sources of cash flow. This will make a substantial difference in your premiums if you decide to go on the Affordable Care Act websites for coverage. A substantial taxable account and savings can help defray the reported income for maximum subsidies. If it is 16 months, you can also consider Cobra from your employer for the 16 month span between 63 1/2 and 65(Medicare).

 

[RetMD21]

I think I may be able to get Cobra for insurance temporarily. My thinking is that I want a Medigap policy when the time comes to facilitate splitting my time between our current home state and the retirement state. I don't want to worry about out of network issues. Probably it would be best to establish residency in the retirement state (looking at Az) to have the insurance based there since we are anticipating selling the Michigan house and spending less time here in the long run. I didn't know about the ability to switch from a Advantage Plan in the first year without underwriting.

 

[Aerides]

All employer insurance can be "cobra'd" for up to 18 months, if you sign up within 30 days of the end of regular employer insurance. So, yes, pretty much anyone should be able to get that. Since you are 62, retiring in 1.5 years, then 18 months cobra - you would be covered till MC.

 

[steelyman]

Too old for "early" retirement?

I used COBRA coverage for 13 months after leaving my job and before becoming eligible for other coverage. It was expensive because you paid both the employer and employee portions plus an administrative fee. But worth it to me as it was necessary to provide proof of “continuous credible coverage” (this was pre-ACA).

 

[HadEnuff]

Hello all, I'm 62, wife is 59 and I am looking at retiring in a year and a half. I like my work but there isn't a semi-retirement option and I am getting tired of full time. Our investments are in low cost funds and some stocks and our spending wold be substantially less than 4%. My main concern is finding health insurance for the pre-medicare period and ensuring that we can get supplements without underwriting. We plan to relocate from the Midwest to someplace warmer. I have been lurking around early retirement forums for years trying to absorb the wisdom but I haven't posted much. I feel like I am retiring late by forum standards. Anyway, I'll go back to reading.

Hi there, and welcome,

You and your DW are nearly identical in age to when we retired. As far as bridging the HC costs until retirement, the good news is you only have a few years to worry about. I had a pretty good idea of what it would cost, because we ran our own business and wrote the checks to the insurance company. I added a 10%/ year.
I hadn't even thought about ACA subsidies, but as it turned out, because I had some money not in IRAs, we were able to live off the after-tax money enough to get some serious subsidy money. You should be sure you are aware of your options in that regard.

Lots of folks here retired in their 60s..

enjoy!

 

[Closet_Gamer]

Welcome. Sounds like you've got the FI part covered nicely. The R is looming and I think we're entering a world where anything before 70 will be considered early as people wrestle with lack of savings, etc.

Seems like you did better than OK to me. Congrats.

 

[aaronc879]

Technically full retirement age for someone born in 1956 is 66 and 6 months. So you are still retiring early if not as early as most on this forum.

 

[RetMD21]

We're such a small business that I think we are exempt from Cobra requirements but I think I can buy the coverage anyway.

I'm glad to know that not everyone here retired in their 30s.

 

[mountainsoft]

I'm glad to know that not everyone here retired in their 30s.

I'm 55 with another five years to go before I can retire. I still consider that early.

Assuming Obamacare is still around when we retire, it is cheaper going that route than paying for Cobra through my wife's employer. Compare both before you make a decision.

 

[txtig]

In my first post to this forum, I used almost the same title as you did (Too Old to Retire Early). I was 60 at the time and planning on retirement at 64. Well I turned 66 today (Happy Birthday to me!), and I’ve been retired for about 2-1/2 years (I retired at 63).

So, maybe you and I are a little late by forum standards, but I think we can still claim ER as compared to the average retiree.

And, really it’s not so much about your age at retirement, but the fact that you’re put yourself in a position to do it successfully. So, go for your ER and don’t worry about your age. I have loved every minute of my retirement.

 

[jollystomper]

Funny, a lot of folks tell that that I was too young to retire at age 60.

If you can get the COBRA option, as others have already said, look into it. My COBRA premiums through the end of 2019 will still be much less than anything on the ACA market for DW and I. In addition, no changes to our current medical providers, while ACA would have had the added burden of scrambling to find several new providers.

That takes us to age 62, so worse case we could have 3 years of ACA rates, which is not as bad since our planning included 5 years of ACA rates and we are saving 2 of those years via COBRA (we also have the added option of buying Megacorp insurance at a discount that may make it no worse than ACA rates).

 

[RetMD21]

I was astonished at the expense of the ACA plans in my zip code. Although expensive, the corporation is paying much less. The broker told me that because we are small it is based on age of each employee and dependent and also utilization.

 

[bada bing]

63 still sounds like "early" retirement to me. Welcome to the group.

I'm retiring in 2020 as well, at age 61. Our individual situations are different enough that I don't have any insight to offer about a lot of your situation. I am planning on splitting time after retirement between Alaska and Arizona. I am a resident of Alaska, but bought a house in Tucson 6 years ago during the downturn. So far, I've found Arizona to be a great location to spend winter, although I don't think I could do it year round. I would imagine splitting the year between Michigan and Arizona will be a very nice lifestyle.

 

[foxfirev5]

Welcome, anyway by Suze Ormon standards you're way too early. All the best.
From a medical insurance stand point I understand your concern. ACA is a plan B for me but I strongly feel we need to proactively support this program. (until something better comes along). However you reach a point where you take the leap. Come on in the waters fine.

 

[Red Badger]

I'm 55 with another five years to go before I can retire. I still consider that early.

Assuming Obamacare is still around when we retire, it is cheaper going that route than paying for Cobra through my wife's employer. Compare both before you make a decision.

^^^ I retired at 60, so I often write FIre instead of FIRE. Fortunately, the IRP (Internet Retirement Police) don't patrol here much.

And do check ACA vs COBRA. I was fortunate to have Tricare. But when I saw the cost for my mega-corp COBRA option, I needed a stiff drink.

 

[JustCurious]

Fortunately, the IRP (Internet Retirement Police) don't patrol here much.

Are you kidding? The IRP have a whole division devoted to patrolling this forum!

 

[MarieIG]

Are you kidding? The IRP have a whole division devoted to patrolling this forum!

True, but the not so early retirees, (yours truly included) fall into the category of misdemeanor transgressions.

The felony offenders appear to be those who are expending some amount of effort to earn income, while calling themselves retired.

 

[DrRoy]

Take your time on the relocation. You do not want to change too much at once. Try living in an area that you might move to for six months or so to really see if you like it.