Plan against the worst and hope for the best. A friend of mine always said that. That is how she led her life. I am a planner – I plan almost everything. But I do not plan for the worst and I always hope for the best. But when it comes to feeling good about our future in terms of health and retirement, this would be a time to plan for the worst and hope for the best.
Health care is and remains one of the largest retirement expenditures. However, many people approaching retirement age do not understand the risks these costs represent for their financial plan – and are not prepared to.
According to the 4th Annual Nationwide Retirement Institute survey, America’s workers are “scared” of health care costs after retirement, but few do not care about their worries.
Here are just a few statistics and things to think about:
Remember that in the past when everyone worked at the same department stores, companies or manufacturing firms for over 35 years. At that time you were promised a pension and you were allowed to keep your health plan even after leaving the service – also for the whole family! In 1997 this was 1 in 4 and in 2011 this figure was only 10%.
Today, 26% of the American population does not know what will be the cost of annual healthcare for retirees when they leave employment. The burning question is: Do you have a budget or are you planning enough for these health issues?
If you have not thought about it yet, and you plan to do so, you need to know what portion of your income or savings you need for Medigap or Medicare Supplemental Premiums, premium for Medicare Part B, premiums for Medicare Part D ) and expenses for medications out-of-pocket.
Just released is the new Part B deductible that all Medicare subscribers have to make do. It went from $ 166 to $ 183.
To help you with the planning:
Have a very good idea of what income you will have in the 65+ years of your life. Typically, these are pensions, IRAs or other retirement accounts and social security.
Write a budget. Know what your living expenses are. Do you have a car or home payment? What will food cost, special events / occasions like birthdays, utilities. Be conservative here and be aware of inflation.
Get a very good picture of what your healthcare expenses look like. This should start with a conversation with your financial advisor.
If you are in your 40s, 50s, or even 60 years, you should discuss how to plan your retirement costs. If you have a counselor, I suggest you make this appointment.
One of the most important decisions a Medicare participant will make is the choice of a Medicare health plan. Brokers can help you get the best plan for your needs, lifestyle and budget.
Similarly, for those for who Medicare alone is not enough, there are many Medicare supplement plans. You need to make out some time to look around and you will find the perfect one for your situation.