$12,000 Annual Health Insurance Cost Deemed "Appropriate" for Late 50s Amidst High Pension Incomes

A recent social media post by Joe Flaherty has sparked discussion regarding the financial realities of retirement, specifically highlighting substantial pension incomes and the perceived appropriateness of high health insurance costs for individuals in their late 50s. The tweet, dated October 23, 2025, notes that "Other accounts say they make ~$130K/year in pension income, and likely clear $100K."

Flaherty further stated, "$12K per person/year for health insurance seems appropriate for people in their late 50s given rates of utilization." This figure translates to $1,000 per month for individual health coverage, a cost that aligns with or exceeds average premiums for this age group, particularly for comprehensive plans or those purchased independently. Health insurance costs generally increase with age due to higher utilization rates and potential health issues.

The pension income mentioned in the tweet, approximately $130,000 annually, significantly surpasses the median private pension benefit in the U.S., which was around $11,040 per year in 2022. However, it falls within the range of mean household incomes for those approaching retirement, with households aged 55-59 having a mean income of $147,500 and those aged 60-64 averaging $125,100 in 2024. These higher incomes often stem from a combination of traditional pensions, Social Security, and investment assets.

The tweet concludes with a quote from @xwanyex, stating, "> "I am asking you to participate in your own survival." This statement underscores the critical need for robust financial planning, especially concerning healthcare expenses, as individuals approach and enter retirement. Experts often recommend that retirees aim to replace 70-80% of their pre-retirement income, and healthcare costs are a significant factor in this calculation.