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If you have a pension and you're planning to retire before 65, there is a healthcare trap most pension holders are walking right into — and your pension is the exact thing that makes you more exposed to it than almost anyone else.

A 63-year-old couple in West Virginia was paying $300 a month for their Gold health insurance plan. In 2026, that same plan costs them $4,562 a month — because their income went $400 over a specific threshold. That's the ACA subsidy cliff. And it doesn't care how close you were to the edge.

Here's what nobody is saying to pension holders specifically: your pension income is quietly pushing you toward that edge every single month before you've made a single spending decision. Most ACA advice assumes you start from zero income in retirement. You don't. Your pension starts your income clock the day that first payment hits, and you cannot turn it off.

In this episode, Cole walks through exactly how the cliff works, why pension holders are uniquely exposed to it, what going over actually costs in real dollar terms, and the two frameworks that matter most for managing it — threading the needle during the ACA years and opening up the conversion window once Medicare starts.

Topics covered:

• How the ACA subsidy cliff works and what the 2026 threshold means for early retirees
• Why pension holders can't engineer their income from zero the way private sector retirees can
• A real case study — Tom and Linda — showing exactly how pension income limits the margin before the cliff
• What an accidental cliff crossing actually costs over the pre-Medicare window
• Why the 403(b) and the brokerage account work completely differently for MAGI management
• The two-phase framework: protecting the subsidy in the ACA years and using the Medicare window before RMDs arrive
• Why the compounding pre-tax balance building during the ACA years creates a larger tax problem at 75 if nothing is done

This episode is for informational and educational purposes only and does not constitute personalized investment, tax, legal, or insurance advice. Viewing this content does not create an advisory relationship. The strategies and examples discussed are hypothetical and for illustrative purposes only. Always consult a qualified professional regarding your specific situation.Farer Financial LLC is a Registered Investment Adviser registered with the Washington State Department of Financial Institutions.