Many people these days are considering early retirement as they contemplate their future.  In determining if you are financially able to retire early, there is one key expense that many people forgot to include when they calculate their budget and monetary needs – health insurance.  Given that health insurance is extremely expensive if you do not yet qualify for Medicare, this can be a deal breaker when making the decision to retire early.

So what options do you have for health insurance if you are considering early retirement?  Essentially there are three options.  First, is Medicare.  If you qualify, Medicare is definitely the most affordable option.  Your second option is COBRA health insurance.  You can continue to keep your health insurance from your employer when you retire for 18 months.  Under COBRA insurance you will have to pay the full premium.  The last option – a private plan.