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How much does healthcare cost in retirement?



Questions to ask to help project healthcare spending

According to Fidelity Benefits Consulting, a 65-year-old couple retiring this year will spend $275,000 on healthcare, not including long-term care expenses. This number continues to rise every year, leading even affluent Americans to say they are “terrified” of what healthcare costs may do to their retirement plans.

Fortunately, good planning can help retirees ensure they have the right healthcare strategy into retirement and throughout their lives.

Financial advisors are playing an increased role in helping clients develop these strategies.

Here are four questions advisors and wealth managers can ask their clients to help project care spending:

When do you plan to retire?

Retiring before Medicare eligibility means clients will lose workplace-provided health insurance and may need to pursue alternative coverage. Depending on how early they plan to retire, this can add substantial costs.

What is your health status?

What kind of health coverage your clients should pursue will depend on how much care they expect to use. Retirees or other clients who are in generally good health may be able to find less expensive, less robust coverage to suit their needs.

What costs should you expect?

Largely, expected healthcare costs in retirement comprise Medicare Part B premiums, as well as costs associated with Medicare Supplement plans, Medicare Advantage Plans, and prescription plans and drug costs.

What unexpected costs should you prepare for?

Adding a cushion to retirement plans for unexpected healthcare expenses can help provide even more peace of mind that clients are covered. In particular, long-term care, which is not covered by Medicare, is something to consider.

Bernard Health’s Healthcare Extension for Financial Advisors gives your clients access to a team of licensed, noncommissioned advisors who provide healthcare support in an area of significant financial concern. See how Bernard Health can extend financial advisors’ value proposition by clicking below.

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