You have to consider the concept of the saying, looking at a glass half empty or half full. What a brilliant
concept that we never truly understand. When people look at a situation like health insurance, what
they see are the costs they have and that’s fair. What they don’t see is the level of increased care they
get for having that coverage, the savings they are getting for that quality of care and so much more. The
same concept can also be applied to the strategy on when to retire.
Whenever it comes to something like health, finance or personal decisions, everyone has to remember
that everyone has different needs, strategies, ideas and concepts. They see things a certain way and
based on how they think and their prior knowledge, they feel a certain way about their coverage or their
retirement strategy. Retiring early is another example because you have to consider the things that
could have impacted the persons decision. Many people overlook that when they hear about the option.
Why People Retired Early
Some people retired early because they had a good financial decade between 2010-2020 and were able
to retire earlier than they expected. However, the largest group of people to retire early in the last two
years are due more to pandemic related situations. Some companies, who had to let go of workers
because of early shutdowns, offered to or had employees elect for early retirement instead of being let
go. Some companies even added benefits to encourage people to retire. While many are financially
stable for the years before they reach 65, they have to consider these years where they are unable to
tap into important benefits like their retirement funds and Medicare.
The Gap Years
It doesn’t matter if you stopped working at 55 or 64, the time before you reach the age of 65 can be
financially difficult for some. Many retirees have actually taken up second jobs, taking advantage of the
labor shortage and putting their experienced skills to use. They find that this alleviates the financial
burdens, but perhaps not their medical costs. While you have planned for your retirement and well, if
you had not planned to begin early then you may have to consider new forms of income during these
If someone is able to cover their years financially, they still may have to consider working as the costs of
goods and services through inflation continues to go up. If you consider the costs of these services and
products going up even more, a retired man or woman could have over two thousand dollars in monthly
expenses even if their home is paid off. That’s the cost for a single person in a home they own that does
not require any major repairs. If you are 60 then that means you would have to be able to financially
cover your costs of yourself at a potential minimum of $120,000 before you even reach 65 years of age
where social security and Medicare can help as well as pensions and retirement funds. That needs to be
considered before the decision about stopping work completely is made.
The Good Years
One positive spin on things is that many who are retired have found a way to combine their experience
and their newfound freedom into ways to make money and still have the joy of being independent.
Companies that are still looking for reliable work, are now happy to hire people of all ages who are able
to work and are willing to accommodate on hours as well. If you need to work ten hours or twenty
hours, you can find the work to do that and cover your costs so that you have the rest of the time to be
with your family or do whatever you wish. The other concept of the gap years many are applying to this
is an opportunity to greatly reduce their workload and stress load without hurting their long-term
If your expenses are at two thousand a month and you can continue to work for twenty hours a week
and cover those costs, then you have an opportunity to minimize the expenses you have to take on each
month that will impact your long-term financial stability. Because companies are paying higher for in-
house employees, especially with specific experience, people in these gap years are finding lucrative
work and because they are not receiving more benefits, they are actually getting higher pay as well
because they are more affordable per hour than fulltime workers. This concept shows that you can cut
the hours at work and live the life you’ve been wanting. Everyone has a valid point on how they view the
way things currently are. However, most would agree that there are opportunities for some that there
have never been before.
Working fewer hours gives you the ability to spend more time with your family, do things you want to
do and so forth. Some find the employment like a nice little hobby that keeps them busy and allows
them to socialize during the day. That’s a great way to look at it and a great way to utilize your time. For
those who are concerned about health insurance, the great news for them is that insurance companies
have adapted because of the massive wave of early retirees. They understand these gap years may be a
struggle for some and a welcomed break for others. The idea is to figure out how to get where you want
to go based on what the concept is for you and how you look at this particular time.
Working with independent insurance advisors is the best way to learn what your options are when it
comes to health insurance and coverage options. An advisor will work with you and help you find a plan
based on your current budget, benefits you have available based on your work schedule, ways to cut
back on prescription costs and more. These gap years are a time where everyone has to adapt to what
they have built up already and what they can build moving forward. If you have a great plan and
strategy, there are wonderful people available who can help you get there.