$1.5 Million at 60 Looks Solid Until You Calculate Five Years Without Medicare

Core Insights - Early retirement at 60 with $1.5 million may seem feasible, but the five-year gap until Medicare eligibility at 65 introduces significant healthcare costs that can jeopardize retirement plans [2][5]. Financial Implications - The 4% withdrawal rule allows for $60,000 annually, but ACA marketplace premiums for individuals aged 60-64 without subsidies can take a large portion of these withdrawals before accounting for deductibles and out-of-pocket expenses [4][8]. - The expiration of enhanced ACA subsidies in 2026 is expected to lead to steep premium increases for middle-income Americans aged 50-64, exacerbating financial strain [6][8]. Strategic Planning - Effective strategies to manage pre-Medicare healthcare costs include keeping modified adjusted gross income below ACA subsidy thresholds, which can significantly lower premiums. This may involve timing Roth conversions, managing capital gains, and potentially delaying Social Security benefits [7][8].