Early Retirees Get Clobbered By High Health Insurance Costs
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It’s a tough putt, but at least you missed that insurance bunker.
We don’t mean to put another damper on your dreams of early retirement, especially in light of the recent market mayhem. But if you were somehow still thinking about swapping your office for the golf course, you’d be wise to check the cost of health coverage first.
Too young to qualify for Medicare and rarely covered by employers, early retirees can face a threefold increase or more in premiums than when they were at work - and that’s if they are healthy. In the individual market, insurers can charge applicants with ailments more or reject them outright. Smart Money has the details.
Don’t assume that if your employer offers retiree health insurance that you’re off the hook. Individual out-of-pocket expenses are soaring. For instance, retirees under age 65 who receive health benefits from their former employer can expect to pay about $3,600 for single coverage and almost $10,000 for family coverage on average in 2009.
In contrast, if they stay in their current jobs they will pay just around $1,100 for single coverage and $3,100 for family coverage next year, according to a recent study by Towers Perrin, a […]
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