How do I account for healthcare costs before I'm eligible for Medicare in my retirement plan?
If you plan to retire before Medicare eligibility, model the cost as a recurring expense in the Retirement planner:
- Open Retirement planner - Money in & out tab.
- Click + Add payment - Custom payment.
- Name it (e.g. "Healthcare premiums pre-Medicare").
- Set Wealth impact to Decrease and enter the expected annual cost with the date range from your retirement year to age 65.
For current marketplace premium estimates for your situation, check healthcare.gov. After Medicare eligibility, add Medicare premiums as a separate, smaller recurring expense with the same flow. To compare "retire at 60 with pre-Medicare costs vs retire at 65" side-by-side, save each version as a what-if scenario and switch between them on the projection chart.
