I am 59 With $1.6 Million and Ready to Retire. Not Budgeting for This Expense Almost Stopped Me.

At 59, $1.6 million may be enough to retire, but leaving work also means giving up health insurance coverage from your employer. Medicare generally doesn’t become available until age 65. Paying marketplace premiums during that six-year gap could increase your withdrawal rate, and that may undercut the longevity of your nest egg.

How Health Insurance Could Raise Your Withdrawal Rate

Marketplace or private coverage can add premiums and out-of-pocket costs to the expenses your portfolio will need to cover. Kiplinger reports that the average monthly premium for a 60 year old in 2026 is $1,598, based on data for benchmark Silver marketplace plans. 1

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