If you’re under full retirement age, you might want to think twice before calling it a career. Here are a few reasons why.

Question: I’m 63 and my employer has eliminated my health insurance and dramatically cut my pay. If I retire now, I’ll get about $1,300 a month in Social Security, plus I can collect another $2,000 a month by investing my $310,000 in savings in an immediate annuity with lifetime payments. All in all, I should have about the same income I have now. So I figure why work without health insurance when I can retire and not have health insurance? Do you think my plan makes sense? –Bill P., Martins Ferry, Ohio

Answer: Sorry, but I think you need to reconsider your plan, as I believe it has a few potentially dangerous flaws in it.

To begin with, you’re apparently assuming that you will forego health insurance until you reach age 65 and qualify for Medicare. That’s not a good idea. Continue reading →