Retiring early is a dream for many Colorado Springs residents—especially with access to hiking trails in Palmer Park, scenic mornings in Black Forest, and the flexibility to finally enjoy the Garden of the Gods without a weekend crowd. But if you leave the workforce before age 65, one key question looms large: how will you cover health insurance until Medicare kicks in?

Why Health Insurance Gaps Matter

The years between early retirement and Medicare eligibility can be expensive if you’re not prepared. Medical costs can add up quickly, especially without an employer-sponsored plan. Having a clear plan for health insurance is essential for protecting both your well-being and your retirement income.

Coverage Options for Pre-Medicare Retirees

Fortunately, several options are available to help bridge the gap. Your best choice will depend on your income, medical needs, and timing.

Here are some common paths:

– Marketplace (ACA) Plans – You may qualify for premium tax credits depending on your income. Great for those retiring in their 50s with a need for comprehensive coverage.

– COBRA – This allows you to extend your employer coverage temporarily (usually 18 months), though it can be costly.

– Spouse’s Plan – If your partner is still working, this can be a seamless (and often cost-effective) option.

– Short-Term Health Insurance – Not ideal for everyone, but worth considering if you’re in good health and need limited coverage for a short period.

Each route comes with trade-offs, so it’s worth having a financial plan that accounts for both premiums and potential out-of-pocket costs.

Planning Around Income & Subsidies

Many early retirees in Colorado Springs are surprised to learn that lower income can unlock better health insurance rates through ACA subsidies. For example, if your taxable income drops after retirement, you may qualify for a more affordable plan even before Medicare. Coordinating income sources like Roth IRA withdrawals or capital gains can help you control your subsidy eligibility.

Don’t Forget Health Savings Accounts (HSAs)

If you had a high-deductible health plan before retirement and contributed to an HSA, you can now use those funds tax-free for qualified medical expenses. It’s a valuable bridge strategy—especially for those who planned ahead.

Get Help Tailoring Your Transition

Navigating pre-Medicare health insurance is complex, but it’s also an opportunity. Whether you’re living in Rockrimmon or venturing toward a cabin near Woodland Park, your health plan should align with the rest of your retirement goals. At Evergreen, we help early retirees understand their options, reduce surprises, and make confident decisions.

Key Takeaways for Early Retirees

– Medicare doesn’t start until age 65—so you’ll need coverage until then

– ACA plans may offer subsidies based on income

– COBRA, spousal plans, and short-term coverage may be options

– HSA savings can be a valuable resource

– Your health insurance strategy should complement your retirement plan

Let’s Talk About Your Healthcare Transition

Thinking about retiring before 65? Let’s build a plan that covers your health and your financial goals. We serve Colorado Springs and the surrounding areas with honest, personal guidance for early retirees.

Contact Evergreen today for a personalized healthcare planning session.