Early retirement may be a goal you’ve been working toward your entire career by strategically saving, allocating your risk, and positioning your personal finances.. As a credit union executive, if you choose to retire before age 65, the age at which most people qualify for Medicare, you may also have to consider how to secure low-cost medical insurance. In our recent webinar, we explain how you may reduce the costs of purchasing personal insurance—and one way is to take advantage of the Affordable Care Act’s  Premium Assistance Tax Credit (PATC), a valuable healthcare subsidy.

It’s critical to coordinate your multiple savings instruments, such as 457(b), bonuses, accumulated leave, CASD,  and more, to optimize your cash flow before age 65. The more you can limit your income in your early retirement, the more tax credit benefits are available. Dialing in the various factors of your plans, including the risks, taxation, and distribution timing of each instrument, can help you meet the target income eligibility and receive the healthcare subsidy. 

In the webinar, we explain what you may consider with your plans and options to create a robust income with little or no taxation while still qualifying for the PATC for the years you’ll need it. Additionally, we discuss:

  • The medical insurance options available to you, including COBRA and ACA Marketplace, among others, and which ones may suit your situation more effectively.
  • How to calculate your target income for the PATC, what situations may make you ineligible for the credit, and why you may delay filing for Social Security.
  • Multiple hypothetical cash flow examples based on different scenarios you may experience. 

Personal medical insurance is a significant expense for retirees who don’t yet qualify for Medicare. The PATC is a valuable incentive that can help you potentially reduce those costs when you design your retirement income strategically. Stream the entire webinar to learn more.

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