Medicare Eligibility Central to Retirement Decisions

Workers without retiree health care benefits are especially likely to retire the month they turn 65, according to a recent study conducted by the Center for Retirement Research. The study found that Medicare eligibility is a significant factor for workers considering retirement, especially workers aged 64 who do not have health coverage from an employer. About 25 percent of workers do not receive retiree health coverage from their employers, meaning they would lose health coverage altogether if they retired before age 65. The study shows these workers are likely to wait until they are Medicare-eligible to retire in order to ensure access to health coverage.

Beginning in 2014, people who do not qualify for Medicare will be able to purchase insurance in the health insurance marketplaces, or exchanges. The new marketplace may provide an opportunity for workers to retiree earlier and still maintain health coverage until they turn 65 and become eligible for Medicare.
Nevertheless, it is important to note that some older adults, particularly those who perform physical labor, may need to retire before the age of 65. For these retirees, access to affordable health coverage and eligibility for Medicare at age 65 is critical.

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