If you retire before age 65, you'll need to cover yourself until Medicare eligibility begins. This 'pre-Medicare gap' catches many early retirees by surprise, but there are solid options to bridge it without overpaying.
Why the gap matters
Medicare generally starts at 65. Retire at 62 and you have three years to cover on your own. Going without coverage during that window is a serious financial risk, since a single hospital stay can cost tens of thousands of dollars.
Your options to bridge the gap
- Private PPO plans — flexible coverage you can keep until Medicare
- COBRA — possible, but often expensive and time-limited to 18 months
- Marketplace plans — worth checking if your retirement income qualifies for subsidies
Why private PPO is popular for early retirees
Early retirees often value the freedom to travel and keep their doctors — exactly what a PPO offers. And because private plans frequently cost less than COBRA, the savings over a two- or three-year bridge can be substantial.
Transitioning to Medicare at 65
Your bridge plan isn't forever. As you approach 65, an advisor can help you enroll in Medicare on time and avoid late-enrollment penalties, so the handoff from your private plan to Medicare is smooth.
Plan ahead
The smoothest transition is to line up bridge coverage before you leave work. A licensed advisor can map your options from retirement day to your Medicare start date — free, with no obligation.
