The hidden costs of an early retirement

BIRMINGHAM, Ala. (WIAT) — Many people spend their entire lives saving for their retirement, but even calling your job quits a couple years early can lead to a huge financial burden.

A 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. That number doesn’t include the cost of over-the-counter medications or long-term care like nursing homes.

The main reason is because Medicare doesn’t kick in until 65. Without coverage from a former employer, the couple is left footing the bill for insurance themselves.

So if you still want to retire early experts say to consider putting money into your job’s health savings account. It lets you invest any unused money in order to build up a nest egg for healthcare expenses.

Copyright 2014 WIAT 42 News

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