The 3 Biggest Challenges for Early Retirees
Early retirement is a dream for many workers as they look forward to reclaiming more of their free time without facing the worries that having a career can cause. However, those who retire early face some major challenges that those who work until a more typical retirement age don't have to deal with as much. Three obstacles to early retirement are particularly difficult to overcome, and you'll want to make sure you're able to handle these tough issues before you decide to give up your career and retire at an early age.
Most people rely on their employers to get insurance coverage for their healthcare expenses, and with the exception of a small number of workers who can get retiree health benefits from their former employers, retiring early means having to find a new way to protect against high healthcare costs. The risks of going without coverage are even greater in one's 50s and early 60s than they are for the many young adults in their 20s who choose not to get individual coverage outside of work, as the older you get, the more likely you are to face problematic medical conditions that require extensive and costly treatment.
If you're married and have a spouse in the workplace, then getting family coverage through your spouse's employer is often the simplest move. Continuation coverage under COBRA is available to early retirees, but eligibility is only for a relatively short period of time, typically 18 to 30 months. Individual coverage under the Affordable Care Act is also an option to consider, but it can be costly, and eligibility for potential subsidies will depend on family size and total family income. Medicare doesn't kick in for most people until age 65, and for many, that's the main motivation for waiting until then to retire.
Source: Fool.com
