Retirement Planning
Bridging the Gap Before Medicare at 65
Retiring before 65 requires a clear health coverage plan. Underestimating pre-Medicare healthcare costs can derail an otherwise strong retirement strategy.
Coverage options to evaluate
- ACA marketplace plans and subsidy implications.
- COBRA continuation and transition timing.
- Spousal employer coverage if available.
Common planning mistakes
- Budgeting only premiums and ignoring deductibles/out-of-pocket.
- Not coordinating taxable income with ACA subsidy cliffs.
- Failing to set a separate healthcare reserve bucket.
Practical move: include a healthcare-specific stress test for the years before Medicare eligibility.
Bridge-year planning checklist
- Estimate total healthcare spend (premium + out-of-pocket) by year.
- Coordinate withdrawal strategy to manage subsidy and tax outcomes.
- Set contingency reserves for unexpected medical events.
Run Retirement Expense Scenarios