Medicare for Boomers at age 55?
What happens to a Boomer when he or she is 55, has worked his or her 20 to 25 years and is ready to retire? Good question. What happens if this same Boomer wants to begin a second career at least until they are 62 or 65 – actual retirement age.
Too young for Medicare at 55 but retiring. Besides COBRA, what is available? In some cases, employer insurance can continue, usually through COBRA or through a switch to a private policy, too often with high premiums and much less coverage. Unless this 55 year old has retired with an excellent income and a ton of savings, the cost of insurance can be prohibitive.
However, there have been suggestions that 55 year olds that are eligible for retirement should be able to buy into Medicare and pay ad least modest premiums. Since this is a younger age group, usually with less health issues – especially less serious or long term heath issues – premiums would offset other Medicare expenses of the current recipients who are older, and they could help fortify and supplement the current program. In addition, part of these premiums for the 55 year olds could be used to put in a savings account that will provide some modest supplements to the 55 year old early retirees until they reach the age to actually draw Medicare and Medicaid, and the government could borrow from the interest on that money to help supplement current or future premiums.
The issue of early retirement of Boomers, as well as what they can and will do is an important one and needs to be explored thoroughly so as to create an appropriate solution. It is hopeful that the time will be taken to research the issue at great length and several solutions can be proposed that will help a great many people now and in the future.
