The healthcare bridge between retirement and age 65

Medicare eligibility generally begins at 65. Anyone who stops working before then needs coverage for the intervening period, and the cost of that coverage is frequently the largest single line item in an early-retirement budget.

The usual options are an employer's continuation coverage, a spouse's plan, or a marketplace policy. Marketplace premiums are tied to modified adjusted gross income, which creates a direct link between how retirement income is drawn and what health coverage costs.

That link is the reason healthcare and tax planning are usually discussed together rather than separately. A withdrawal strategy chosen purely for tax reasons can raise premiums, and vice versa.

This describes how the system is structured. It does not evaluate which coverage is appropriate for anyone, which depends on health, geography and family circumstances.