I’m 62 and want to retire but I want to avoid huge insurance premiums. Can I afford to just wait for Medicare?

Core Insights - The article discusses the financial concerns of a couple in their early 60s regarding healthcare costs before they qualify for Medicare [1][4] - It highlights the potential financial burden of private insurance during the gap years until they turn 65 [1][3] Financial Situation - The couple plans to retire at 63, expecting an annual income of $50,000 from Social Security and 401(k) withdrawals [2] - They have $80,000 in emergency savings, but are aware that this could be depleted by a single health emergency [2] Insurance Options - Simon could extend his employer's coverage under COBRA, with premiums ranging from $400 to $700 per month per person, totaling up to $1,400 per household [3] - Affordable Care Act (ACA) options could reduce premiums to about $500 per month, but typically range from $800 to $1,200 per month without subsidies [3] - Even with ACA, the couple could face annual costs of $9,600 to $14,400 for health insurance, which is significant given their fixed budget [3] Healthcare Costs - Average healthcare costs for individuals aged 60 and older in the U.S. are approximately $12,000 per year for routine care [4] - Without insurance, the couple would be responsible for the full costs of emergency care, which can be substantial, such as hospital stays for serious conditions costing upwards of $18,931 [4] Cost Comparison - A comparison of costs shows that under subsidized ACA, the couple might pay approximately $11,880 for two years of health premiums [5]