To retire or not retire?

[newbury]

I and SWMBO WORKED for the Army and have full coverage health insurance with Kaiser now in retirement at the group rate.

And better yet there are two GP Doctors and three Dentists in the IMMEDIATE family so often we only pay lab costs. It's a family thing.

 

[dave1949]

This is a very interesting and informative thread. I am 50 and would like to retire in 6 or 7 years. My big concern is healthcare costs. What do you guys that retire early do for health insurance? It seems like anything more than a policy just covering catastrophic illness would be very expensive.

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I am retired and 1.5 years away from Medicare eligibility. I have a $15K deductible health insurance policy that costs me $309/month. It's quite the rip off, but the cheapest I can find here. I am basically buying medical bankruptcy insurance is the way I figure it.

 

[joemd11]

I am retired and 1.5 years away from Medicare eligibility. I have a $15K deductible health insurance policy that costs me $309/month. It's quite the rip off, but the cheapest I can find here. I am basically buying medical bankruptcy insurance is the way I figure it.

That is pricey but essential if you want to protect your assets.

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[Red Horse]

Excellent thread with a lot of good info. This site is the best!

My two cents.

I think most people concern themselves with the financial aspect first-and that is important-in particular if you still have a mortgage or a lot of other debt hanging over your head. Debt is non discretionary-you have no choice. So while you can always avoid buying a new toy or taking a trip, a mortgage payment is another thing. So for you "young" guys who are looking down the road, think of that-will you be done with that mortgage by the time you want to pack it in?? If not better adjust that retirement date.

The next thing in my mind, is having "another life". Most responses have covered this-if you don't have other interests and the ability to AFFORD those interests that is a problem. My guess is, by their nature most of the people who frequent this site have plenty of interests-regardless of its color-green, orange, blue etc.

One thing that I don't think has been mentioned or not stressed enough is your personal surroundings. In other words, some guys worked forever because they couldn't stand being "around the house"-if you get my point. Not a good thing. When I retired, I asked a co worker who was older than I.."so when are YOU going to pack it in". His answer-"are you kidding? my wife takes care of 7 grandkids". End of discussion. If your wife is going to drive you nuts in plain English, you can't have enough hiding spaces.

In retrospect, I've been "out" 3 years in May after 44 years and a few months shy of 67. I felt great and enjoyed my work but was in a position in which when my phone rang at 10PM, it was not good news. I can tell you, when the phone rings now, I don't clinch my teeth!

So to those of you sitting on the fence, hopefully all of these posts taken with a grain of salt will serve you well. And the fact that you are reading them puts you one leg up on the situation.

Good Luck:thumbsup:

 

[MotorSeven]

This is a very interesting and informative thread. I am 50 and would like to retire in 6 or 7 years. My big concern is healthcare costs. What do you guys that retire early do for health insurance? It seems like anything more than a policy just covering catastrophic illness would be very expensive.

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That's an excellent question and here is what we did. I had the option of staying on the City's insurance plan. the cost while working was $250ish a month for my wife and I. Once retired it was going to $800 a month and if I had kept it now would be well North of a thousand dollars a month.

I have an opinion on health insurance and it may not be popular, but I just don't understand why folks grip about high premiums when they expect their insurance company to cover every stinking thing such as office visits for sore throats, sprained ankles and other minor health issues? So we got off the gravy train and went with "The BIG one policy"....we have a $5,000 deductible each. We pay for - minor health problems such as office visits, out of our own pocket. A typical office visit for my allergy Dr runs about $60 and I buy all my medication on-line through Canada for 1/3 the price here. If the BIG one comes along, we are covered up to a million bucks once we have hit our deductible. 5 years ago this policy cost $250 a month, now $315. If you go this route I recommend a HSA(health savings account), it's a tax sheltered account set up just for that large deductible.

So for the pat 5 years our estimated savings from that old "covers all" policy is around $40,000. We spend an average of $1K on our normal health care each year leaving a $35,000 savings. I think a $5k deductible should be the minimum folks should have and we are even thinking of kicking it up to $10K.

 

[Travelover]

That's an excellent question and here is what we did. I had the option of staying on the City's insurance plan. the cost while working was $250ish a month for my wife and I. Once retired it was going to $800 a month and if I had kept it now would be well North of a thousand dollars a month.

I have an opinion on health insurance and it may not be popular, but I just don't understand why folks grip about high premiums when they expect their insurance company to cover every stinking thing such as office visits for sore throats, sprained ankles and other minor health issues? So we got off the gravy train and went with "The BIG one policy"....we have a $5,000 deductible each. We pay for - minor health problems such as office visits, out of our own pocket. A typical office visit for my allergy Dr runs about $60 and I buy all my medication on-line through Canada for 1/3 the price here. If the BIG one comes along, we are covered up to a million bucks once we have hit our deductible. 5 years ago this policy cost $250 a month, now $315. If you go this route I recommend a HSA(health savings account), it's a tax sheltered account set up just for that large deductible.

So for the pat 5 years our estimated savings from that old "covers all" policy is around $40,000. We spend an average of $1K on our normal health care each year leaving a $35,000 savings. I think a $5k deductible should be the minimum folks should have and we are even thinking of kicking it up to $10K.

Well said. To follow up on the HSA (health savings account), the money in this account rolls over year after year and once you hit medicare age, you can use it to pay for premiums. So, you never pay taxes on this money, though it is deductible in the year you set it aside. Limit is $3250 for an individual or $6450 for a family per year. If over 55 you get to add an extra $1000. Since my DW is also over 55, we shield over $8000 a year from taxes. The HSA provider has investment options, so it is not sitting in a near zero interest account.

Don't confuse this with a FSA (flexible spending account) where you have to use it or lose it every year. An FSA is different.

 

[brin]

I thought this tune might be appropriate...John Hartford is the great performer...enjoy and listen to his message if you have doubts about retiring...

John Hartford : "In Tall Buildings" from 'Something Else'

John Hartford : "In Tall Buildings" from 'Something Else' - YouTube

 

[duke7595]

I think if you read what I said with a clear mind at no point did I say there is anything wrong with your gun laws...Just the opposite I stated your gun laws are for you to determine.
I was asked a question and I answered it as the laws pertain to Australia. I don't think my answer, which was not critical of the USA or its gun laws in any way, deserved that response

My apologies sir.

 

[brin]

I just read this article about one man's retirement trial...in the NY Times...very funny stuff...

http://www.nytimes.com/2013/02/17/opinion/sunday/retirement-scarier-than-freddy-krueger.html

 

[brin]

I just read this article about one man's retirement trial...in the NY Times...very funny stuff...

http://www.nytimes.com/2013/02/17/opinion/sunday/retirement-scarier-than-freddy-krueger.html