Health insurance is a key driver when determining a retirement date. My father was fortunate in that he was able to retire completely at age 59 but he was only able to do so because the company he worked for allowed him the option to purchase group rate insurance through the company until he is eligible for Medicare.
Not everyone is as fortunate and Medicare eligibility, age 65, tends to be a target retirement date because the retirement nest egg is goes away quickly if you’re paying out-of-pocket for health care or paying for an individual policy, especially if you have any type of pre-existing condition.
When the Supreme Court upheld the Affordable Care Act they may have created options for those who want to retire early but have concerns about health care coverage.
The ACA provides options for those between 55 and 65 through insurance exchanges by potentially providing very affordable coverage. The ACA also changes the medical underwriting game and age now has less of an effect on premiums. Guaranteed issue and limitations on denial for pre-existing conditions also exist with the ACA.
For those of you in the “twilight” of your careers, the ACA may help you end up on the beach a few years earlier than you’d planned.