Early retirement

HW "Skip" Weldon · 2008-09-04T14:04:52+00:00

I'd like to see comments on the issue of early retirement.First, consumers in their 50s and 60s spend more on healthcare thanyoungsters, so they will need a good insurance policy. Around herethat costs around $1000/month. Ignoring taxes because I don't knowwhat they'll be a decade or more from now, using a 4% withdrawalfactor requires a present value sum of $300,000 just for healthinsurance (that's for those who retire today).Given that number, and looking at a 4% withdrawal factor, futureyearly inflation and obstacles to withdrawing from 401k and IRAs, Iquestion the practicality of a normal person trying to plan for anearly retirement that comes anywhere near maintaining their presentlifestyle.-HW "Skip" Weldon Columbia, SC-------------------------------------- is a moderated newsgroup where Moderators striveto keep the conversations on-topic for financial planning. Other postingguidelines include a request for brevity and another for trimming posts towhich we respond. For all of the other tips and suggestions, see "FROM THEMODERATORS: Posting to ", a weekly post now on theNewsgroup.

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Reed 17 years ago

Bear in mind that KP is not really an "insurance" co. They are a

*non-profit* health "plan". Their salaried doctors, their hospitals, etc. Only available in 9 states where they have their own facilities.

Check this from:

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"About us Kaiser Permanente is the largest nonprofit health plan* in the United States, serving 8.6 million members in nine states and the District of Columbia. We are an integrated health delivery system, which means that we provide and coordinate the entire scope of care for our members"

Don't get me wrong, I have several family members in Denver who have KP coverage, and their care has been excellent, and reasonable cost. I wish it was available in CT. Quotes I have for individual insurance coverage, age 64, in CT, start about $900/month. Which is why I am still working, with coverage thru employer.

--Reed

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HW "Skip" Weldon 17 years ago

The problem here in SC is that employers who still continue coverage on retired employees - primarily public employers like State and Federal government - are not dropping the benefit, but hiking the retiree's out of pocket costs by a noticeable amount. Ditto for the plan deductibles and co-insurance benefits.

-HW "Skip" Weldon Columbia, SC

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rick++ 17 years ago

Those are "teaser rates". if you have any pre-existing condition you are offered much more expensive insurance or denied outright. A pre-existing condition includes a recorded BP reading over 120/80, a LDL over 100, a prescription for a chronic condition, cancer or heart attack, etc. About 25% of applicants 50-65 are denied. The NY Times and LA Times have been wrting many articles about this.

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iarwain 17 years ago

If you're married to a younger person who won't be retiring at the same time you do, you can get a cheaper rate on family health insurance if your spouse works at a place that offers it. Just something to think about.

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Early retirement

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