Early Retirement: Exciting… But What About Health Insurance?
If you live in New Jersey and you’re thinking about retiring before age 65, congratulations—you’re about to enjoy more free time, less stress from work, and maybe even more travel or hobbies. But before you trade in your office key for a set of golf clubs, there’s an important piece to plan for: health insurance.
Medicare coverage doesn’t begin until age 65, which means if you retire at 60, 62, or even 64, you’ll need a plan to bridge the gap. The good news? You have options, and you don’t have to figure them out alone.
Why Planning Ahead Matters
If you retire without a plan, you could end up facing:
High COBRA premiums from your former employer
Going uninsured (which is a huge financial risk)
Rushed choices that don’t fit your healthcare needs
By starting your research at least six months before your retirement date, you give yourself the time to compare plans, apply for subsidies, and set up seamless coverage so there are no gaps.
Your Main Coverage Options in NJ Before 65
Marketplace Coverage Through Get Covered NJ
New Jersey runs its own health insurance marketplace called Get Covered NJ. If your household income is under certain limits, you may qualify for Advanced Premium Tax Credits and state subsidies that can dramatically lower your monthly premium.Example: A healthy 62-year-old early retiree could find a silver-level plan for hundreds less per month after subsidies—especially if their income drops in retirement.
COBRA Continuation Coverage
If you’ve been covered under your employer’s plan, you can continue that coverage for up to 18 months through COBRA. While this keeps the same benefits and doctors, you’ll pay the full cost (your share + your employer’s share), which can be expensive.Private Plans Outside the Marketplace
If you don’t qualify for subsidies, private health insurance plans may be worth comparing. These can sometimes offer better provider networks or benefits than marketplace plans—especially if you have specific doctors you want to keep.Spouse’s Employer Plan
If your spouse is still working and has employer-sponsored insurance, joining their plan can be an easy and affordable option until Medicare eligibility.
How to Estimate Costs in Retirement
When you retire, your household income often changes—and so do your insurance options. Your subsidy eligibility on Get Covered NJ is based on your projected annual income, not your previous salary.
For example:
If you worked full-time with a high income, you may not have qualified for subsidies.
In retirement, with lower taxable income, you could qualify for significant savings.
This is why it’s important to estimate your Modified Adjusted Gross Income (MAGI) for the year you retire, so you get the correct financial assistance.
When to Enroll
You don’t have to wait for the regular open enrollment period (November 1–January 31 in NJ). Retiring and losing employer coverage qualifies you for a Special Enrollment Period, which gives you 60 days from the loss of coverage to choose a new plan.
Working with an Agent Makes It Easier
An agent can:
Compare COBRA vs. marketplace vs. private plans for your situation
Help you project your MAGI for subsidy calculations
Walk you through the Get Covered NJ application
Make sure your preferred doctors and medications are covered
At Truce Benefits, we specialize in helping early retirees find affordable, high-quality coverage. We’ll explain every step so you can make confident choices and enjoy your early retirement—without worrying about healthcare bills.
Bottom line: Retiring early in NJ can be the best decision you’ve ever made, but only if you plan your health insurance carefully. Contact Truce Benefits today for a free consultation and let’s make sure your transition is smooth, affordable, and stress-free.
