I retired at age 55 thinking my 20 year pension would be enough to cover my pre-Medicare healthcare premiums and other expenses until I reached age 65. I was wrong.
Retiring early has been great, but the expenses due to inflation have increased dramatically. So, thinking about retiring early? Think again.
Like every fall during open enrollment, I recently analyzed my healthcare plan and was shocked to learn my monthly premium was going up again. Inflation is really taking a bite out of my pension, but there is a silver lining.
The following chart shows the erosion that pre-Medicare healthcare premiums have had on my pension over the years.
Year Monthly Premium Monthly Gross Pension
2015 $131 $2,055.87
2016 $131 $2,055.87
2017 $170 $2,055.87
2018 $210 $2,055.87
2019 $334 $2,055.87
2020 $384 $2,055.87
2021 $461 $2,081.57
2022 $500 $2,107.59
2023 $553 $2,128.67
2024 $616 $2,149.96