Early Retiree Health Insurance Issues

March 2007

Individuals considering early retirement, i.e., retirement before age 65, must not only carefully plan their financial resources, but they should also plan for health insurance coverage till age 65 when eligibility for Medicare begins. They must also plan for supplemental health insurance coverage for age 65 and beyond. The Employee Benefit Research Institute has estimated that a couple, both age 65 with average life expectancy, would need as much as $295,000 to cover premiums for health insurance and out-of-pocket expenses during retirement. For early retirees, the costs would be even higher.