What they don't tell you about early retirement

[Reece_James]

Retired six months ago and healthcare costs are eating me alive despite qualifying for ACA subsidies
Before retiring, I calculated $800/month for a silver plan with subsidies based on my projected income but my reality is $1,100/month after I accounted for actual expenses. Then there's the $6,000 deductible I'm now paying out of pocket because I actually use healthcare. Everything added up, I'm spending close to $20K annually on healthcare and that's $20K I wasn't spending when my employer covered 80% of premiums and I had a $1,500 deductible.
Mind you, this isn't a complaint about the system, just a reality check for anyone planning to retire before 65. Run your numbers assuming healthcare will cost significantly more than you think and budget for actually using your insurance, not just paying premiums. I'm still glad I retired, but this gap is way more expensive than any calculator suggested

 

[Mrs.softtouvh]

This is really valuable info, thanks for sharing the real numbers, I'm still a few years out from this and healthcare is my biggest unknown. Did you factor in the deductible when you were planning, or was that the part that caught you off guard? I've been looking at premiums but you're right that actually using the insurance is a whole different cost