Health insurance has long been one of the biggest obstacles to early retirement, but the Affordable Care Act may solve that, U.S. retirement experts say.
In 2013 and before, employees who wanted to retire early had few options for health insurance if an employer didn't provide health insurance. They had to buy an individual plan, which are more expensive for those in their 50s and 60s and if the person had diabetes or heart disease, this type of pre-existing condition could leave them uninsurable, the EBRI says. For example, a bare-bones policy might carry a
"The insurance market is pretty scary for early retirees right now,"
In 2014 under the Affordable Care Act, a 60-year-old can no longer be charged more than three times what a 20-year-old pays, down from today's typical 5-to-1 ratio. In 2014, any 50-something or 60-something can buy his or her health insurance in a Marketplace whether they are working or retired.
In addition, about half of those buying via the Marketplace will qualify for a subsidy, which is based on income. An early retiree with a high premium has a good chance of qualifying for a tax break, especially if the retiree will live on less than when they were employed.
For example, a 60-year-old couple making
The Affordable Care Act made a difference for 62-year-old
On the Tennessee Marketplace Pyle found her monthly premium would run
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