Ask The Experts for The Family Center
Q: As I get older, what considerations should I have regarding my health care associated costs during retirement?
Here are 3 steps to take prior to retirement to help plan in managing your health care costs.
- Incorporate estimates of health care costs in your retirement financial planning. Recent projections for a 65 year old couple place total out of pocket health care costs for a 20 year retirement at $260,000. (Source: Feb.4, 2017 Barron’s article titled: The Real Cost of Health Care in Retirement by Reshma Kapadia). So as you plan for your dream vacation trip to Europe, realistically you should also asses the costs and need for providing for your health care.
- Understand Medicare. Many people are surprised to learn, upon signing up for Medicare, that there are costs involved with the program. Even after paying into the program throughout your career, you will also face monthly premiums and cost-sharing provisions once you are enrolled.
- Identify Available Resources. The good news is that there are many companies, professionals, and agencies that can assist you in making informed decisions. And like most things, it is best to be prepared prior to the need, so start now.