NEW YORK (CNN) – Many of us dream of retiring early, but leaving the workforce sooner, could mean tens of thousands of dollars in extra medical costs.
Many people spend their entire lives, saving for their retirement, but even calling your job quits a couple years early, can mean a huge financial burden.
A new study by fidelity shows that: If a couple retires at 62 instead of 65 they’ll face an additional $51,000 in medical expenses over those years.
And that doesn’t even include the cost of over the counter medications, pain relievers, or long-term care, like nursing homes. The main reason: Medicare doesn’t kick in until 65.
So without coverage from a former employer the couple is footing the bill for insurance themselves.
With the help of government subsidies retirees with moderate incomes can lower their bill, but many couples with joint retirement incomes wouldn’t qualify for that.
So if you still want to retire early how do you prepare for the potential burden?
Experts say to consider putting into your job’s health savings account, which lets you invest any unused money, in order to build up a nest egg for healthcare expenses.