How important is medicare eligibility in the timing of retirement?

Abstract

The brief's key findings are: (1) Although Social Security's "Full Retirement Age" has moved to 66, 65 remains a popular age to withdraw from the labor force. (2) One reason might be the availability of Medicare at 65, particularly for workers who have employer coverage while working but not after they retire. (3) The analysis, which relates retirement patterns to health coverage, suggests that Medicare explains about 30 percent of the continued spike in age-65 retirements. (4) And, as anticipated, those who would lose employer coverage if they retired before 65 appear to be the most affected by Medicare eligibility.