Retirement: What to Expect if You Retire Before or After Age 65 with Danielle Roberts, Ep # 164

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By Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP®. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Deciding to retire before age 65 can be a tough decision to make. For most people, this decision will result in an extra $1000 or more a month in health insurance expenses. Retiring after age 65 has its pitfalls as well. On this episode of Retirement Starts Today, Danielle Roberts joins me again to discuss the potential landmines that you need to look out for whether you are planning to retire before or after age 65.

Outline of This Episode
  • [2:22] What about retiring early?
  • [6:29] Which is better, shopping on the exchange or going directly to the insurance company?
  • [9:18] How to manage the risk?
  • [13:25] What are some mistakes people make when they retire after age 65?
  • [20:34] Why you don’t want to miss part D drug coverage.
Should you work longer just for health insurance?

If you are considering working longer just for the insurance Danielle and I both recommend that you don’t. Instead, compare the cost of insurance through COBRA to the cost through the ACA. If you want to retire there are many plans to choose from through the ACA. One way to lessen the costs of insurance is to sign up for a high deductible plan that includes an HSA. That way you are building a healthcare nest egg at the same time. Discover a creative healthcare solution if you or your spouse is significantly younger by listening to Danielle’s advice.

Which is better, shopping on the exchange or going directly to the insurance company?

It seems that it would be easy to shop insurance companies on your own these days by browsing through the companies websites. But Danielle recommends using the healthcare exchange at Healthcare.gov instead. She finds this to be a better way to compare carriers and their prices. The options are easier to find and the site will display all the plans that are offered in your area. Have you ever used the healthcare exchange?

How to manage the risk?

Insurance is all about the transfer of risk. When trying to choose between a high deductible plan vs. a lower deductible plan you’ll want to compare your health concerns with your budget concerns. Consider how you use doctors. Do you have monthly visits with different specialists? Or do you visit the doctor once a year for your yearly check-up? If you only go to the doctor a couple of times a year then you don’t need to have a plan with a copay.

What are some mistakes people make when they retire after age 65?

Many people delay their coverage of Medicare part B when they are still employed after age 65. This is fine while they are still employed, however, it is important to sign up for Medicare part B and D as soon as possible after leaving their employer-sponsored plan so as not to get stuck with a hefty penalty. Listen in to find out what you need to do to avoid penalties or a lengthy battle with Medicare.

Make sure you are signed up for the Every Day is Saturday newsletter so that you can respond to it and have a chance to receive a free copy of Danielle’s book, 10 Costly Medicare Mistakes You Can't Afford to Make.

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