Author Topic: How to value health insurance for early retirement  (Read 537 times)

Livethedream

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How to value health insurance for early retirement
« on: February 13, 2018, 03:12:44 PM »
Trying to figure out how I should value health insurance in retirement.

Iím 31, married, two kids. Our current plan is for me to retire at 50. I work for the state of CA and would be eligible to start drawing my pension and the big benefit would be health insurance for life.

Just trying to determine the worth of working a few extra years tell 50. I will be vested at 45, but if I retire then I will not be able to draw my pension yet or collect any health insurance. A third option is to quit at 45, then at 50 if I find any permanent state job at 50, regardless of pay, I could work one day then retire with medical and pension.

At what retirement income would it be worth buying health insurance in the marketplace instead?


Sibley

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Re: How to value health insurance for early retirement
« Reply #1 on: February 13, 2018, 03:24:56 PM »
Considering that US health insurance is in turmoil right now and you're looking at a 15-20 year horizon, you're shooting in the dark at a moving target. I'd suggest waiting 10 years and revisit this topic then. Retiring at 45 or 50 isn't going to change the plan for the next 10 years probably. And you never know what might happen.

Bicycle_B

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Re: How to value health insurance for early retirement
« Reply #2 on: February 13, 2018, 09:39:47 PM »
Good remark by Sibley.  In your shoes, I imagine shooting for retirement at 45 with enough $ to pay for a market plan.  If I got closer and getting that one day of work at 50 was what would allow me to retire at 45, based on having enough cash to cover the next five years' premiums, I'd retire at 45 or not based on whether work was enjoyable/acceptable.  Plan for 45 as best you can, do today's stuff today, and get some sleep.  No more worries for 14 years!