Obamacare makes early retirement affordable and achievable, for millions of Americans, who would otherwise be forced to delay their retirements, due to unaffordable and unavailable healthcare.
Obamacare removes perhaps the biggest reason why individuals and couples are afraid to retire early – concern over healthcare. Not only is healthcare extremely expensive, if someone has a pre-existing condition, they may not be able to get any healthcare coverage at all if they retire early.
Unaffordable healthcare, or the inability to get healthcare, forces many individuals and couples to delay their retirements until the age of 65, when they become eligible for Medicare coverage. Obamacare guarantees that almost anyone, regardless of whether they have a pre-existing medical condition or not, can receive affordable healthcare at any age.
Obamacare, officially known as the Affordable Care Act, opens the door to early retirement, for millions of American couples, who would otherwise delay their retirements.
Obamacare Early Retirement Case Study
Obamacare makes a dramatic difference in the cost of healthcare for individuals and couples in early retirement.
Take for instance a 55 year old couple living in California on a $30,000 annual retirement income, a $2,500 per month retirement budget, comparing Obamacare to purchasing healthcare without Obmacare. Source - Covered California
Monthly Medical Expense
Without Obamacare: $1,314
With Obamacare: $150
Difference: $1,164 Per Month
Obamacare reduces the couple’s monthly medical expenses in early retirement by an astounding $1,164 per month.
Monthly healthcare costs under Obamacare rises at higher retirement income levels but still remains affordable. The same 55 year old couple earning $45,000 in annual retirement income would pay $346 per month for healthcare coverage. Obamacare has income limits which would cover most Americans in early retirement.
Obamacare Income Limits:
There are many different healthcare plans under Obamacare, which include the usual deductibles and co-pays, found in most traditional healthcare plans.
The Other Reason Obamacare Enables Early Retirement
However, one of the most important features of Obamacare for individuals and couples in early retirement, is the maximum out of pocket annual expenses for healthcare. In the case of the couple mentioned above, their total annual maximum out of pocket expenses for healthcare would be $6,350 per individual.
What this means, is that if you were to have a major medical incident in early retirement, say a heart attack, it would not wipe out your retirement savings or force you into bankruptcy.
For individuals who have been forced into early retirement, Obamacare could make the financial difference in their ability to stay in early retirement, and not have to find a lower paying and un-fulfilling job in order to secure health care.
Obamacare is a game changer when it comes to early retirement, enabling millions of Americans to achieve an early retirement, by taking away their single biggest worry and fear of early retirement – healthcare.
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