Healthcare Bridge to Medicare Calculator

How it works

Years = 65 − retirement age · Total = Σ over each year of (monthly premium × 12 × (1 + inflation)^year)

Medicare eligibility begins at 65, so retiring earlier means paying for private coverage — usually an ACA marketplace plan or COBRA — out of pocket in the meantime. Premiums for pre-Medicare coverage are high and tend to rise faster than general inflation, and this is often one of the largest and most overlooked costs of early retirement. Managing your taxable income to qualify for ACA premium subsidies can dramatically reduce the total, which is why the number you enter should be your net premium after any subsidy.

Worked example

Retiring at 60 leaves five years to bridge. Starting at $650 a month ($7,800 a year) and growing 6% annually, the five-year total is about $43,900 — noticeably more than 5 × $7,800 because of compounding premium increases.

Frequently asked questions