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It's no secret more and more baby boomers are electing to take social security early at age 62.
But one of the major hindrance to retiring early is most of them are primary bread winners and need the health insurance coverage offer by their employers for their spouses (who are often times younger than them or not working).
Just got an email from my wealth management advisor this afternoon. He's cautioning that eventually this will create a dual "strain" on the federal system (both health and social security trust). Plus since these people will stop working, this will mean less tax revenue collection from the government.
1. More people will take early social security benefits at age 62 (because the new health entitlements will offer many early retirees health subsidies).
2. That means more of the individuals/early retirees will buy insurance on government exchanges and run their income levels low enough to qualify for full subsidies.
This is a caution of collateral damage cause by this healthcare reform package that has been pass.
There are 10-15% of people who are age 62 who can afford to retire early and don't because they need to keep working until they qualify for medicare at age 65 (67).
What the government will not anticipate is that starting in 2014, by providing healthcare to be purchased and subsidize up to a certain income level, this creates another set of population who will (raid the Social Security Benefits office early AND strain the new Healthcare reform budget by buying into the exchanges with almost 50-100% government subsidies.
I guess the CBO, Democrats or whoever was trying to budget this healthcare bill would have never envision more adults will opt for early social security because of the opportunity to buy healthcare insurance at much reduced rates while waiting for full medicare eligibility.
I'm not saying all those age 62 can retire and opt for social security early but there are at least 10-15% of my wealth management advisor's clients who can afford. These are people who will strain both the social security and healthcare budgets.
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