Paying for health care in retirement is not an easy task. Despite rising costs and increasingly complex coverage requirements, you can take steps today to help ensure you’re not struggling tomorrow. As you explore your own retirement planning and health-care expenses, here are some facts to keep in mind:
Fact 1: We Are Living Longer
The longer you live, the more planning you’ll have to do to maintain a prosperous retirement.
Fact 2: Health Care Could Cost You Up to $400,000
Health care will be one of the most expensive responsibilities you have once you retire.[iv]
Here’s an example of a cost breakdown:
- Medical expenses: $260,000
These costs include increasing prescription drug prices and higher medical care costs.[vi]
- Long-Term Care (LTC) coverage: $138,000
Retirees usually receive diagnoses later in life for three common ailments: stroke, Alzheimer’s disease, and cancer.[vii]
- Other miscellaneous costs depend on your insurance and Medicare coverage
These include ongoing costs for items such as vision and dental care, co-pays, and any out-of-pocket expenses (not adjusted for inflation).[viii]
Fact 3: Medicare Part A and Part B Won’t Cover All Your Costs
- Eye exams
- Hearing aids
- Most dental care
- Routine foot care
Making sure you have adequate insurance and income to cover supplemental expenses will help you prepare for any gaps. Calculate your potential retirement health-care costs at AARP Health Care Costs Calculator.
Ultimately, your specific retirement goals, health, savings, and other unique details will determine the amount of money you may need to cover your health-care costs. If you’d like to learn effective strategies that you can implement to achieve your financial goals, give our office a call today at 303-741-9772.