Can I Retire Before 65? Health Insurance Options in South Carolina
Retirement planning • South Carolina
The short answer
Yes, you can retire before 65, but you need a plan for health coverage before Medicare. Compare a spouse’s employer plan, COBRA, Marketplace insurance, and any retiree benefits available to you. Then include premiums, medical expenses, and the income needed to pay for them in your retirement budget. Starting Social Security at 62 does not, by itself, start Medicare.
You may feel ready to leave work long before your 65th birthday. The question that slows the decision often sounds like this: “Can I afford the health insurance until Medicare starts?”
For someone retiring in Myrtle Beach, moving to the Grand Strand, or settling in the Charleston area, healthcare deserves a place beside housing, travel, and everyday spending. A retirement date should work with your coverage dates and your finances.
Our getting ready to retire planning looks at these connected decisions before the paycheck ends.
What are your health insurance options if you retire before 65?
Start with the coverage you can actually obtain, its effective date, and its total cost. The best fit depends on your household and the plan details.
| Option | Why consider it? | What to verify |
|---|---|---|
| Spouse’s employer plan | Coverage through a working spouse may be available. | Enrollment deadline, family premium, providers, and what happens when your spouse retires. |
| COBRA | May temporarily continue your existing employer coverage. | Eligibility, full premium, election deadline, and termination date. |
| Marketplace plan | An individual policy may bridge the years before Medicare. | Available plans, household income, financial assistance eligibility, network, and prescriptions. |
| Employer or union retiree coverage | Some former employers offer retiree health benefits. | Eligibility, dependent coverage, costs, and coordination with Medicare later. |
1. Check a working spouse’s benefits first
Ask the benefits administrator for the cost of adding you and the deadline after your current coverage ends. Compare the additional household premium with the other options, rather than comparing only the amount currently deducted from your spouse’s paycheck.
2. Treat COBRA as a bridge with an end date
For eligible workers, COBRA following retirement or job loss commonly lasts up to 18 months. You generally pay the full premium, and an administrative fee may apply. The South Carolina Department of Insurance explains these continuation rights.
Someone retiring at 62 may need coverage for roughly three years. An 18-month bridge would leave another period to plan for. Ask about any applicable South Carolina state continuation rights if federal COBRA does not apply; the state insurance department’s health insurance resources are a starting point.
3. Compare Marketplace coverage before choosing
Our partner company, Coast Financial Group, helps with Marketplace health insurance plans before 65 and Medicare coverage when you become eligible. We can help you compare available Marketplace plans, review potential financial assistance, and work through enrollment. Losing job-based coverage can qualify you for a Special Enrollment Period; timing and effective dates should be reviewed before your employer plan ends.
Start with our Marketplace and Medicare insurance guidance so your coverage choices can be considered alongside your retirement plan.
Premium assistance depends on eligibility and household circumstances. Use current-year information and an actual application or estimate; do not assume an older quote or a neighbor’s premium applies to you.
4. Read retiree benefit rules carefully
If you have employer or union retiree benefits, obtain the written terms. Ask what happens if you decline coverage, whether you can rejoin later, and how your spouse is affected. Public employees should check their particular retirement system and benefits administrator.
Retiring in Myrtle Beach or Charleston? Check more than the premium.
The South Carolina Department of Insurance lists Marketplace insurers and the counties they serve. A plan available in Horry County may differ from one offered in Charleston County. Check availability using your actual residential address.
Build a list of your physicians, preferred hospitals, prescriptions, and regular care. Then verify them with the insurer and the providers for the specific plan and coverage year. An insurer’s familiar name does not tell you everything about an individual plan’s network.
- Moving to the Grand Strand? Compare coverage at your new address before assuming your current policy will follow you.
- Receiving care in another city? Check referrals and out-of-network rules for those providers.
- Splitting time between states? Ask how routine care away from home is handled.
Coast Wealth helps households connect these costs with retirement income and investment planning. Insurance services are offered through our partner company, Coast Financial Group; our Medicare and insurance guidance page explains that relationship.
How can IRA withdrawals affect health insurance costs?
Marketplace financial assistance uses an income calculation, not simply your spending budget. HealthCare.gov says to include most IRA and 401(k) withdrawals, along with income such as capital gains, interest, and dividends. Qualified Roth distributions are generally excluded. Its income reporting guide also addresses Social Security and other household income.
That makes withdrawal planning relevant to the coverage decision. Taking extra taxable income for a car purchase or making a Roth conversion may change your assistance eligibility. A conversion should be evaluated with both its tax cost and the possible effect on coverage costs in mind.
Your retirement year needs its own projection
Include wages earned before retirement when estimating full-year household income. A person who retires in September can have a very different first-year picture from the next full calendar year without wages. Update your Marketplace application when income changes and coordinate estimates with your tax professional.
Our guide to which accounts to withdraw from first in retirement explains why savings, traditional retirement accounts, and Roth funds need to be considered together. The aim is a sustainable household plan, with appropriate reserves and investments—not choosing an account solely to pursue a subsidy.
A hypothetical example: retiring in South Carolina at 62
Meet a fictional couple in the Myrtle Beach area
Both spouses are 62 and want to stop working. They estimate $60,000 a year in living expenses before health coverage and medical costs. For illustration, they budget another $15,000 a year for premiums and expected out-of-pocket care.
Their initial spending estimate becomes $75,000 a year, or $6,250 a month , before any additional taxes. Over three years, the illustrative healthcare allowance alone totals $45,000 if costs remain unchanged.
Their planning questions are practical: Which coverage is available? How will they fund the spending? How much taxable income will the withdrawals create? What happens if medical costs are higher or one spouse becomes eligible for Medicare first?
Hypothetical illustration only. The $15,000 allowance is an assumption, not a quote, South Carolina average, or recommended budget. Actual premiums, assistance, taxes, medical needs, and future costs vary. No investment return or financial assistance is assumed.
The same process applies to a household in Charleston or elsewhere in South Carolina. Replace the sample numbers with actual plan quotes and a household cash-flow projection before deciding whether your retirement date is affordable.
A checklist before your employer coverage ends
- Confirm the final coverage date. Ask whether benefits end on your last workday or another date.
- Compare available coverage. Get written costs, plan documents, and enrollment deadlines.
- Budget beyond premiums. Include deductibles, copays, prescriptions, and a reserve for unexpected care. Check what the plan’s out-of-pocket limit excludes.
- Project household income. Include the retirement year and subsequent years, with proposed withdrawals and conversions.
- Map each spouse’s transition. Your coverage needs may change on different dates.
- Put Medicare enrollment on the calendar. Review eligibility and timing before 65.
For most people, Medicare’s initial enrollment period is seven months: the three months before the month you turn 65, your birthday month, and the following three months. Exceptions and other enrollment periods apply. COBRA is not treated as coverage from current employment for delaying Part B. Check Medicare’s enrollment guidance for your situation.
Before dropping COBRA, verify that another enrollment opportunity exists. Voluntarily ending COBRA generally does not, by itself, create a Marketplace Special Enrollment Period. HealthCare.gov’s retiree coverage guidance explains the distinction.
Frequently asked questions
Can I get Medicare at 62 if I retire?
Retirement alone does not make you eligible for Medicare at 62. Eligibility generally begins at 65, although some people qualify earlier through disability or certain medical conditions.
Does claiming Social Security at 62 include health insurance?
No. Starting Social Security retirement benefits does not automatically provide health insurance at 62. Plan separately for coverage before Medicare eligibility.
Can I buy Marketplace coverage after retiring in South Carolina?
Yes. Our partner company, Coast Financial Group, can help eligible South Carolina retirees compare Marketplace plans and work through enrollment. Losing employer health coverage can create an enrollment opportunity outside annual open enrollment. Eligibility, coverage dates, and financial assistance depend on the applicable rules and your household details.
Is COBRA always better than a Marketplace plan?
No. Compare actual premiums, benefits, providers, prescriptions, and how long you need coverage. Keeping familiar coverage can have value, but the cost and end date still need to fit your plan.
How much should I save for health insurance before Medicare?
Use quotes for your age, address, household, and expected income, then add a realistic medical spending allowance. A general online estimate cannot determine whether your retirement plan can support the cost.
Can Coast Wealth help coordinate this decision?
Coast Wealth Management Group provides retirement planning for households in Myrtle Beach, the Grand Strand, Charleston, and other areas we serve. Our planning connects income needs and investment decisions; Marketplace health insurance and Medicare guidance are provided through our partner company, Coast Financial Group. Explore our retirement planning services and health coverage guidance to see how the pieces fit together.
Reviewed October 18, 2026. General education only, not individualized investment, tax, legal, or insurance advice. Coverage, eligibility, networks, costs, and rules can change. Verify plan details with the insurer and coordinate tax decisions with your tax professional. Insurance services are offered through Coast Financial Group by appropriately licensed agents. Coast is not affiliated with or endorsed by Medicare or any government agency.
Official references: HealthCare.gov, Health coverage for retirees and income reporting guidance; South Carolina Department of Insurance, continuation coverage and Marketplace insurer information; Medicare.gov, enrollment timing. These sources support the educational information above. For help comparing Marketplace or Medicare coverage, visit our Medicare and insurance services.
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