Under 65 and Ready To Quit? Redditors Explain Why You Might Want To Keep Working
Retiring early, before the typical age of 65, is likely the dream of many American workers. Being able to amass enough savings to kick off your golden years early sounds perfect, right?
Despite how attractive that dream may be, a number of American workers are finding early retirement impossible, for a reason that may surprise you.
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It’s Not Lack of Savings That Impedes Early Retirement, It’s Healthcare
“Here is a little-known fact: For people under the age of 65, retirement is not based on savings,” said Cody Schuiteboer, president and CEO of Best Interest Financial. “It is based on healthcare. The portfolio might be ready for [retirement] but the individual is not because of the absence of Medicare eligibility before age 65. As such, they need to pay everything out-of-pocket, making retirement impossible for some people even when they are physically and mentally able to do so and 2026 just made the gap wider and more costly.”
Those who are banking on early retirement might be focused on savings, but they should also consider healthcare costs. As Schuiteboer pointed out, Medicare eligibility begins at age 65, without exception. If someone wants to retire early, say from ages 60 to 62, they would have to purchase private insurance for those pre-65 years without receiving any subsidies from employers.
“Prior to 2026, there was an ACA marketplace that offered additional subsidies for middle- and upper-middle-income Americans,” Schuiteboer said. “These extra subsidies have expired with 2025 and the ‘subsidy cliff’ has returned, forcing people to extend their retirement age once more.”
What Retirees Have To Say
In the Reddit thread “What are the things I should be doing NOW before I retire?,” a number of retirees reported running into healthcare roadblocks.
“If you have to go on Medicare, you want your income as low as possible," said user Toolongreadanyway. "I had sticker shock from the income penalty. Granted, it is based on your income from two years prior — i.e., 2026 premium is based on 2024 income.”
User Wild4Awhile-HD, aware of the Medicare-at-65 rule, made sure to work beyond retirement age because of that rule.
“I spent five years prior to retirement eliminating all debt (house, cars, credit cards) and then did all house maintenance (new roof, gutters, paint, new furnace and ac and new water heater)," wrote the redditor. "Once everything was updated and paid off I then was ready to pull the trigger any time after eligible for Medicare (65+). I decided to build up a cash pile and worked until I was 68 allowing me to stay on company insurance.”
Meanwhile, user punkin_sumthin went the precise route that Schuiteboer advised:
“You’re required to choose Medicare advantage or Medicare when you turn 65," they wrote. "I recommend regular Medicare and purchasing gap insurance. I retired from teaching at 62 with a disability. I was able to receive my Social Security benefits. I did not have to switch to Medicare or Medicare Advantage until I was 65.”
The Bottom Line
Anyone planning to retire early needs to have more than just a robust savings portfolio — you need to have a plan for your healthcare needs as well. You’ll need extra cash just to pay for “gap insurance” to last you until you're eligible for Medicare; if you haven’t already, begin saving for gap insurance now.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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