When you think of retirement, age 65 probably pops up, right? But why is that the golden number? Retirement can get tricky, especially when those medical bills start rolling in like they're on sale. Sure, Medicare’s there to help, but should you really cling to that soul-draining job just for it? Or is there a smarter way to dodge that?
Here are Five Fast Facts on waiting for Medicare:
- ⏳ How We Got Here - Age 65 became the retirement age way back in 1935. But a lot’s changed since then—people live longer, do less heavy lifting, and everything costs way more. Fast forward to 2024, and the average retiree’s health care bill is a whopping $165,000! The problem? Most people only plan for $75k. You don’t need to be a math whiz to see that’s not going to end well
- 🆕 Change It Up - One option is to switch to a job you like better that provides better benefits. Even if it doesn’t provide better benefits, you’re still bringing in income, which means your savings will last longer, and you’ll enjoy life better with the better job. And your spouse will probably love that you’re out of the house some, too.
- 🐍 Leverage COBRA - The Continuation of Health Care Coverage (COBRA) law allows you to pay for the same coverage you currently have for up to 18 months. If you time your exit right, you could retire at age 63.5 and just use COBRA to cover the gap. Also, it sounds good. Be like, “Yeah, bro, I’m on COBRA.”
- 🔍 Do Your Research - The key is to find out what’s available to you, how much it will cost, and what it will provide. You might find good plans and coverage from local civic groups, state organizations, professional or business groups, or even a former job. Get started around the age of 50 while you still have time to make a plan and fund it. Or start laying the guilt on your kids and grandkids so you can land in their basement.
- 💡 Oh, By The Way - Even if you do wait until you can get Medicare, news flash: it’s not free! The average premium is around $175 per month, but it can go as high as $400 per month, and it changes from year to year. It is very likely you’ll need supplemental coverage, too, which can often also range up to $400 per month. That’s assuming the country doesn’t go bankrupt, of course. There’s that, too.
🔥Bottom line: The best thing you can do is start saving for retirement early. Give yourself a few decades to bank money, and you’ll almost certainly be fine no matter what. But not everyone has that luxury, and even if you do there are still plans to be made. Don’t wait until it’s too late and you have only bad options…or no options at all!
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