Re:Early Retirement (2006)
by hintymad on Wednesday August 04, 2021 @03:15PM
(#28065004)
Why is health insurance is a concern for early retirement? The platinum option of obamacare costs about $35K a year? Is it because the 10% copay can still mount to a huge expenditure because the healthcare in the US costs too much?
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Re:Early Retirement (2006)
by magneticnorth on Wednesday August 04, 2021 @03:48PM
(#28065409)
$35k a year is a lot if you don't have any income - at a 4% withdrawal rate that requires an additional $875k in savings to cover, and at most incomes it takes many years to save up that much (plus obviously all the years you work to save 1.5M for your $60k/year or whatever in living expenses).
There is also the fact of a 10% or however much copay, which will be a lot over time if you get a chronic illness (which would also reduce your ability to go back to work).
Additionally, most people expect healthcare costs to rise with age, so will want a buffer on top of what healthcare currently costs to cover future bigger expenses.