The Health Care Requirements of Celestial Bodies: Lessons from Venus Williams' Retirement Strategy
Venus Williams, the oldest woman to win a WTA singles match since 2004, has highlighted the importance of retirement planning, particularly for healthcare costs. Fidelity Investments estimates that a 65-year-old may need $172,500 in after-tax savings for healthcare expenses in retirement. This figure reflects ongoing increases in health-related expenses over time.
If you retire before age 65, you will need to arrange health insurance coverage to avoid high out-of-pocket costs for medical care. Common options include Affordable Care Act (ACA) marketplace plans, COBRA continuation coverage, Medicaid, and private individual health insurance plans.
The Affordable Care Act (ACA) marketplace provides coverage for early retirees and may offer subsidies depending on your income. COBRA allows workers to keep their employer-sponsored health insurance for a period of time after terminating a working relationship. However, COBRA can be expensive, with the cost typically lasting for 18 months but potentially extending to 36 months in some cases.
Medicaid can provide low-cost or no-cost coverage until Medicare eligibility, but qualification is based on income and state-specific rules. Private individual health insurance plans can have higher premiums without employer sponsorship.
To help prepare for rising healthcare costs, many retirees use tax-advantaged accounts such as Health Savings Accounts (HSAs). These accounts enable tax-free savings specifically for healthcare expenses. In 2025–2026, HSAs had increased adoption and contribution limits, with up to $4,300 individual contribution and $8,550 family contribution for 2025.
In summary, to cover health costs in retirement:
- Aim to save around $172,500 (or more depending on your expected retirement length and health status) for healthcare from age 65 onward.
- If retiring early (before 65), secure continual health insurance through ACA plans, COBRA, Medicaid, or private coverage to bridge the gap until Medicare eligibility.
- Consider maximizing contributions to HSAs if eligible, for additional tax-efficient healthcare savings.
This proactive planning is crucial, as many Americans underestimate or overlook the cost of healthcare in retirement, risking financial setbacks without proper coverage or savings. In the contiguous United States, someone earning up to $62,000 per year as a single person or $84,000 per year for a family of two can still qualify for subsidies for ACA coverage. Enrolling in a spouse's employer's health plan is the cheapest option if one spouse continues to work and has health insurance.
- For individuals intending to retire before age 65, it's essential to secure continual health insurance through choices such as Affordable Care Act (ACA) plans, COBRA, Medicaid, or private individual health insurance plans to cover any health costs until Medicare eligibility.
- To supplement savings and prepare for increasing healthcare costs in retirement, it's advisable to consider investing in tax-advantaged accounts like Health Savings Accounts (HSAs), which provide tax-free savings specifically designated for healthcare expenses.
