Healthcare is an often-overlooked piece to the puzzle of your retirement finances. But it’s one of the largest, most important costs you’ll have to cover in your later years.
It’s important to mention any health risks you have or may develop to your financial advisor. You don’t need to go as in-depth as you would if you were discussing with a doctor, but any basic information you can provide about potential medical conditions will help your financial planner greatly when helping you prepare for those healthcare expenses during your golden years.
Assuming Medicare costs nothing and will take care of itself is a common misconception among people under 65. When you sign up for Medicare upon retirement, you will find you have to pay regular monthly premiums for both Part B and Part D coverage in addition to hospital and outpatient deductibles and coinsurance. Your share of expenses under Medicare will be very similar to your share of healthcare expenses under your insurance coverage now. Don’t let the “Medicare is free” myth get the better of your retirement strategy!
Thinking you will stay in good health is a common oversight that many make when they are in good health. It isn’t the most uplifting thing to keep in mind, but medical setbacks in our older years are likely more common and severe in nature. In many cases, people who develop unexpected illnesses are forced to begin their retirement benefits before they expected to. These setbacks can pose a significant expense in healthcare spending and can take a big chunk out of your savings.
Medicare only covers a limited amount of long-term care needs. It does not cover assisted living or nursing home care. So, it’s essential that you factor long-term care costs into your long-term financial strategy. Assisted living can cost thousands of dollars each month. So, if you’re healthy plan to set aside money for this expense or consider a long-term care insurance policy now when you can qualify. Purchasing a long-term care policy is a great way to prepare and relieve your family of any burden of having to pay for this type of care in the future.
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Healthcare, specifically long-term care, is a crucial piece of the retirement puzzle. Even though it may not involve your IRAs, 401(k)s, or investment options, a financial professional will look at your whole financial picture, including healthcare costs, and help you plan accordingly. Contact us at (603) 261-3736 to get started.
Source: https://womenwhomoney.com/healthcare-costs-retirement-avoid-mistakes/
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.