Did you know that 62 is the most common retirement age in the U.S.? It’s the age many step into their long-awaited freedom—but with that freedom comes an important question: How do you handle healthcare before Medicare kicks in?
A follower recently asked me this very question, and it’s an important one! Rising healthcare costs can make this feel overwhelming. But don’t worry—there are options. The key is knowing what’s available and what fits your needs.
In this article, I’ll share 7 health insurance options for early retirement at 62. Whether you are close to retirement or planning ahead, I’ll point you in the direction so that you can make informed choices about health insurance for your situation.
Collect Social Security Benefits at 62 or Wait Until Medicare at 65
There’s a dilemma regarding when to collect Social Security benefits—whether to take them at age 62 or wait until 65 when you become eligible for Medicare. When our insurance premiums increased significantly, we chose to go without health insurance for a few years. This is a personal decision that not everyone can afford. At age 65, we applied for Medicare.
Although I do not have any recommendations for the options mentioned, I hope they give you some ideas of where to start looking for health insurance.
Insurance Options for Early Retirement at 62 Before Medicare
No. 1. – Remain on your spouse’s medical insurance plan – You can generally remain on your spouse’s health insurance plan at work after you retire, as long as retired dependents are eligible. Check with your partner’s employer to find out.
No. 2. – COBRA – COBRA allows workers and families the option to continue on their group health insurance plans after voluntary or involuntary job loss. Cobra can be expensive. For that reason, Rebel Retiree refused this option after receiving a severance package that offered it. Learn more about COBRA
No. 3. – Health Savings Plans – Health savings plans allow you to save for medical expenses and withdraw that money tax-free when used for qualified medical expenses. It’s best to do your research before jumping into any plan. This PDF explains this in detail.
No. 4. – Health Care Share Plans – Health care share plans are groups, or ministries, where members contribute funds and collectively cover healthcare expenses. Typically, a member makes a monthly payment to help pay for the eligible medical costs of fellow members. Visit Consumer Insight to find out what you should know.
No. 5. – Medicaid – Don’t confuse Medicaid with Medicare. Medicare is a federal program for health coverage for people over 65. Medicaid is a federal and state program for individuals with limited income. If you think you may qualify because of limited income, read more here for details and how to qualify.
No. 6. – State Health Assistance – Some states offer assistance with medical expenses. Check your state for options and eligibility. SHIP, the free State Health Insurance Program, can help answer questions about Medicare and other insurance questions.
No. 7. – Part-time jobs – Frankly, medical insurance is rarely offered to part-time employees. However, some do. If you work part-time, it’s prudent to ask your employer if you can be on the company’s group plan. If your employer doesn’t offer medical coverage for part-time employees, try the Marketplace.
Early Retirement? Health Insurance 7 Options Video
Conclusion
Navigating healthcare at 62 is essential, but remember—health goes beyond insurance; it’s about you. The best retirement plan means little if you’re not well enough to enjoy it.
As you explore your options, prioritize your health. Stay active, eat well, and manage stress. Investing in your well-being today will lead to greater freedom, energy, and independence in the years ahead.
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