Can You Afford to Retire Early and Pursue Your Passions?

In a recent post, a couple in their early 40s with a combined annual income of $1.3 million is considering leaving their high-paying tech jobs to pursue other interests.

Financial Considerations

The couple has accumulated $5 million in savings and stocks and has an annual after-tax spending of $130,000-$150,000.

Health Insurance

One of their primary concerns is health insurance since they will no longer have employer-sponsored coverage. In the post, a commenter from California shares that they pay $1,000 per month for basic coverage with a high out-of-pocket maximum. However, your actual costs will vary depending on numerous factors, such as your age, location, and health status.

Boredom and Social Interaction

The couple also worries about getting bored or losing social connections after leaving their jobs. To mitigate boredom, it’s essential to have a plan for how you will fill your time and pursue activities that bring you joy. Seeking out volunteer opportunities or joining social clubs can help you stay socially engaged.

Insurance Considerations

As you consider early retirement, it’s crucial to understand your health insurance options.

ACA Health Insurance: An Option for Early Retirees

The Affordable Care Act (ACA) offers health insurance plans through the Health Insurance Marketplace. These plans are available to individuals and families who do not have access to employer-sponsored coverage.

When you purchase an ACA plan, you’ll be able to choose from a variety of coverage options and pay a premium that fits your budget. You may also qualify for subsidies to help lower your costs.

Eligibility

To qualify for an ACA plan, you must:
– Be a U.S. citizen or legal resident
– not have access to affordable employer-sponsored health insurance
– meet certain income requirements

Enrollment Periods

You can enroll in an ACA plan during the annual Open Enrollment Period, which typically runs from November 1st to January 15th. You may also qualify for a Special Enrollment Period if you experience a qualifying life event, such as losing your job or getting married.

Open Enrollment for 2024

The Open Enrollment Period for 2024 will start on November 1, 2023, and end on January 15, 2024.

To Explore Your Options

To explore your options and apply for an ACA plan, you should contact a licensed ACA agent or visit the HealthCare.gov website:
www.healthcare.gov/