Financial Perspectives
Healthcare/Medicare
If you don’t have your health, you don’t have anything
It’s never too early to start thinking and planning for retirement, especially when it comes to major expenses such as healthcare. Medical costs are expected to grow exponentially over the next decade, placing an even greater demand on your income in retirement. In fact, healthcare spending is projected to grow 6.3% annually through 2019, according to a Health Affairs study.
For many, retirement is not just the end of a long, fruitful career, but the start of the next stage of life. You may have a clear vision of your ideal retirement, but that dream could fade if unexpected healthcare costs start to eat away at your hard-earned retirement savings.
Understanding your healthcare options can be complicated, and many retirees woefully underestimate how much they’ll need to cover these expenses.
However, there are steps you can take to mitigate the risk that health problems in retirement could destroy your savings. Planning for these essential expenses could mean the difference between a comfortable retirement and one fraught with worry. That’s why it’s so important to incorporate those costs – and how to pay for them – into your overall financial plan.
Take action today with these steps:
Work with your financial advisor to determine how these expenses fit into your overall retirement picture. Even with insurance and Medicare, out-of-pocket healthcare costs in retirement can be expensive and have the potential to derail even the best-laid plans.
- Take the time to learn about Medicare. Being informed is the best way to avoid mistakes that cost money. Your advisor can help clarify issues you don’t understand or point you toward resources that will help you.
- Estimate what your healthcare needs and costs will be in retirement. Working with your advisor, identify unique healthcare issues that might require more consideration, such as the need for long-term care insurance. Then you can adjust your retirement income plan accordingly.
Asset allocation does not guarantee a profit nor protect against loss.
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The information contained in this newsletter has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. We may, from time to time, have a position in the securities mentioned and may buy or sell such securities in the course of regular business.