How to Retire at 62 and Get Health Insurance in 2027

$1. If your income goes even $1 over the limit, you can lose your whole ACA subsidy for 2027. For a couple in their early 60s, that subsidy can be worth more than $20,000 a year, according to CNBC's reporting on the subsidy cliff (Jan 2026). If you're working out how to retire at 62 and get health insurance, plan around that line.

Here's the short answer. Medicare doesn't start until 65, so you need coverage for three years. Most people use some mix of COBRA, an ACA Marketplace plan, a spouse's employer plan, or a retiree plan from a former employer. Finding coverage is the easy part. Paying for it without going over the subsidy cliff is the hard part.

Can you get Medicare at 62?

No. For most people, Medicare eligibility starts at 65. Retiring earlier doesn't change that. Social Security is different: you can start it at 62. AARP explains this split, and a lot of people miss it.

So there are two programs and two decisions. When you stop working, when you claim Social Security, and when Medicare starts don't have to line up. As you'll see below, keeping them separate can save you a lot of money.

Your options between 62 and 65

The COBRA cost range comes from Real Money Habits and SmartMoneyAfter60. Estimates for unsubsidized Marketplace prices vary more. Published figures for a silver plan at 62 run from about $1,050 to about $1,691 a month, depending on the source and the year. Treat any single number as a rough guess and price your own ZIP code.

How to retire at 62 and get health insurance: a timeline

Most guides give you a list of options. A timeline is more useful.

Age 62: you leave work

Losing job-based coverage opens a special enrollment period for the Marketplace. You have two main choices: stay on COBRA or go straight to an ACA plan. Compare both before your last day.

62 to 63½: COBRA, if you choose it

COBRA lasts 18 months, not six. Start at 62 and it ends at 63½. That's a large share of your bridge, and some online math gets it wrong. COBRA makes sense if you want to keep your doctors or you've already met this year's deductible. It's expensive because you pay the employer's share too.

63½: move to the Marketplace

When COBRA runs out, you get a special enrollment period. If you drop COBRA early by choice, you may not get one, so check with HealthCare.gov before you cancel anything.

Every fall: open enrollment

For 2027 coverage, HealthCare.gov open enrollment runs Nov 1, 2026 to Jan 15, 2027. To be covered on Jan 1, enroll by Dec 15 (NPR, Nov 2026). Shop again every year. Prices change.

Before 65: line up Medicare

Your Medicare enrollment window opens a few months before your 65th birthday. Put a reminder in your calendar early. Health costs keep going after 65. Fidelity estimates that a 65-year-old retiring in 2025 will need $172,500 for Medicare premiums, deductibles and prescriptions over retirement, not counting long-term care (Fidelity Investments, 2025 Retiree Health Care Cost Estimate, Jul 2025).

The 2027 subsidy cliff, in plain English

Many pages that rank for this search still describe the 2021–2025 rules. Those rules have ended.

• Enhanced subsidies ended Dec 31, 2025. The House passed a three-year extension in January 2026. The Senate hasn't acted (taxpayers.net).
• The 400% cliff is back for 2027 plans. If your income is at or below 400% of the federal poverty level, you can get a subsidy. If it's above that, you get none (KFF, 9 Things to Watch for the 2027 ACA Open Enrollment Period).
• Premiums went up. KFF reports that benchmark silver premiums for 2027 rose 13% on average: 11% in HealthCare.gov states and 16% in states that run their own exchanges. Enrollment fell from 22.3 million in 2025 to about 17.5 million.

Where the line sits

• Single person, 2027 plans: about $63,840
• Single person, 2026 plans: about $62,600
• Couple, 2026 plans: about $84,600. The 2027 figure for couples is higher. Check it on HealthCare.gov.

Some pages give $81,760 for couples. That number uses an older poverty guideline, so don't plan around it. The figures above come from acacalc and Real Money Habits. Confirm them on HealthCare.gov before you make a decision.

What this means for you: just under the line, you get a subsidy. A dollar over and you pay full price, per person, at the prices above.

Repayment risk is bigger now

Starting with the 2026 plan year, if you received more advance subsidy than you qualified for, you repay 100% of the difference at tax time. There's no cap. Say you estimated your income in January, then did a Roth conversion, took a bonus, or sold a stock at a gain mid-year. That can become a large tax bill the next April (CNBC).

Check your state

For 2027, New Mexico is the only state fully replacing the expired federal help. At least 11 states offer some extra premium assistance (CNBC, Nov 9, 2026). Your ZIP code can change the math.

Retiring at 62 isn't the same as claiming at 62

For ACA purposes, all of your Social Security benefit counts as income, including the part that isn't taxed. If you claim at 62, those benefits can push you over the cliff on their own or with a modest IRA withdrawal.

Some early retirees stop working at 62 and live on savings for a while, so their counted income stays low during the bridge years. That has a cost too. You spend down savings faster, and claiming age changes your benefit for life. It's a real trade-off, and your answer depends on your own numbers.

Managing income during the bridge years

The account you spend from changes the income the Marketplace sees:

• Cash and savings: Spending money you already have generally doesn't count as income.
• Taxable brokerage accounts: Only the realized gains count, so when you sell matters.
• Roth accounts: Qualified withdrawals generally don't count.
• Traditional IRA and 401(k) withdrawals: These count in full.
• Roth conversions: These count in the year you do them. Many planners time them before or after the ACA years, not during. Madison Partners and healthyfp cover these moves in more detail.

Planning around the cliff is mostly a matter of order: which accounts you draw from first, and in which year. It's worth going over with a tax professional before you commit.

Put the premium in your plan

Three years of premiums is a real cost, and it comes right at the start of retirement, when your savings are largest and most exposed. It also isn't the only risk. Social Security's planning guidance says about 1 in 3 65-year-olds may live to 90 or beyond (Social Security Administration, Retirement Information for Medicare Beneficiaries, 2026). Morningstar puts the safe starting withdrawal rate at 3.9% over 30 years, meaning the money was still there in 90% of simulated outcomes (Morningstar, The State of Retirement Income 2025, Dec 2025).

A Monte Carlo simulation runs your plan through many possible market paths, not one average-return path. That's how you test whether bridge premiums put your plan at risk. At Monte Climb, you enter three numbers: your age, your savings, and your monthly spending. We run them through 1,000 simulated futures and show you how many stay funded. Add your expected premium to your monthly spending and see how the success rate changes. From 65 on, the engine charges Medicare premiums and income-based surcharges year by year, not as a flat guess. Plans run to 95 by default.

Then ask William, our AI planner, "Can I retire at 62?" He shows his work. It's planning software, not advice, and the result is a probability, not a promise.

Ready to see your odds? Show my answer →

Frequently asked questions

Can I get Medicare if I retire at 62?

No. For most people, Medicare eligibility starts at 65, whenever you stop working. You can start Social Security at 62, but you'll need other health coverage from 62 until Medicare begins.

How long does COBRA last if I retire at 62?

COBRA usually lasts 18 months. If you start it at 62, it ends at 63½. When it runs out, you get a special enrollment period to buy an ACA Marketplace plan for the rest of the time until Medicare.

What is the ACA subsidy cliff for 2027?

The enhanced subsidies ended Dec 31, 2025, so for 2027 plans you get no subsidy if your income is above 400% of the federal poverty level. For a single person on 2027 plans, that's about $63,840. Confirm current figures on HealthCare.gov.

Does Social Security count as income for ACA subsidies?

Yes. All of your Social Security benefit counts toward ACA income, including the part that isn't taxed. If you claim at 62, it can push your income over the subsidy cliff, so it helps to think about when you retire and when you claim as two separate decisions.

When is ACA open enrollment for 2027 coverage?

HealthCare.gov open enrollment runs from Nov 1, 2026 to Jan 15, 2027. Enroll by Dec 15 if you want coverage to start Jan 1.