Early-retiring Americans have health care options prior generations did not
Americans who want to retire before 65 but are concerned about bridging the gap between the medical benefits their current job provides and Medicare they could receive later—or about being turned down for new coverage because they have pre-existing conditions—have options prior generations did not, according to Rodney Allain, head of Sales and Distribution for Prudential Annuities. Prudential's "Early Retirement and the Affordable Care Act" white paper outlines Affordable Care Act options for Americans who are interested in retiring but continue to work full time just to bridge their medical benefits to Medicare.
"Many people stay in a job longer than they’d like just for the health insurance," says Allain. "Individuals may now be able to retire early, work part time or move on to a new career knowing there are more affordable health care coverage options available than just a few years ago."
While many groups will benefit from the Affordable Care Act, those who have left full-time jobs and are under age 65 may have the most to gain, Allain notes. They are part of a "semi-retirement" trend in the United States, with large numbers of workers retiring in stages—moving into part-time jobs or becoming self-employed—instead of abruptly at age 65 or 66.
According to the white paper, early retirees may benefit from provisions that not only limit the amount older individuals can be charged, but prohibit insurers from charging women more than men. The study also points out that the Affordable Care Act provides subsidies and tax credits for lower income individuals. That’s a benefit which could prove particularly valuable for early retirees who may have no income or much lower taxable income than when they were working, and can often control the amount of taxable income they take during the years just prior to turning 65 and becoming Medicare eligible.
Want more information? Read the white paper. Want to speak with Rodney? Contact Lisa Bennett.
The Prudential Insurance Company of America, Newark, NJ.