One of the downsides about early retirement is the expensive cost of healthcare in America. Without an employer subsidy, the average cost for a family healthcare insurance plan is about $21,000 in 2020. This post is about how to compare health insurance plans and save money.
The extreme cost of healthcare is one of the main reasons why many employees will work at a job for longer than they really want. If you retire early, unless you earn less than 400% the Federal Poverty Limit (FPL), you will have to pay the full cost of your healthcare premiums. But if you do earn less than 400% of FPL, do you really have enough to retire?
Even if you were eligible for healthcare insurance subsidies, it may feel weird taking advantage of the system. After all, we’ve all been taught it’s always better to give than to receive.
The high cost of healthcare is why you sometimes see one spouse continue to work long after the other spouse has retired. It’s kind of sad that due to expensive healthcare, many couples aren’t able to live their retirement dreams together.
Because I still haven’t been able to convince my wife to go back to work so we can get subsidized healthcare insurance, I’ve asked her to put together some helpful tips on how to compare health insurance plans. We just went through the process and it is quite mind-numbing without a guide.