Will Soaring Health Care Premiums Tank Your Early Retirement?

A man in his 50s gives a piggyback ride to his female partner. They are hiking and there's a view of a river behind them. They both look very happy.

There's a new threat that could force Americans to scrap their early-retirement plans: skyrocketing health care costs. The enhanced Affordable Care Act (ACA) subsidies that expired at the end of 2025. That means 24 million Americans will see a sharp spike in their health care costs unless Congress extends the money-saving premium tax credits.

The most at-risk segment of the population relying on ACA health insurance is middle-income Americans aged 50 to 64. This group is still years away from being eligible for Medicare coverage and faces a doubling or tripling of medical care costs, according to data from KFF, an independent health policy organization.