Planning for retirement? Don’t forget healthcare
Healthcare planning services needed as costs continue to rise
How much will healthcare cost you and your spouse in retirement? According to the most recent estimate from Fidelity Benefits Consulting, a 65-year-old couple retiring this year will spend $275,000 on healthcare, not including long-term care expenses.
This is up by $15,000 from 2016, and as healthcare costs continue to rise, this number is likely to increase substantially every year.
The number one piece of advice for consumers is to factor healthcare into retirement planning. Fidelity offers a few tips for thinking ahead to healthcare in retirement.
How to factor healthcare into retirement planning
1. Consider the timing of retirement
Consumers are eligible to sign up for Medicare three months before or after the month of their 65th birthday, but that might not necessarily be the right time to transition. Evaluate your plan options to determine which is most cost-effective.
2. Medicare Advantage
Fidelity notes that Medicare Advantage plans often pay a higher percentage of claims, but they have more restrictions around networks. Is it more important for you to have access to a wider network of physicians, or pay less out-of-pocket?
3. Spouses should evaluate separate insurance after 65
There is no “joint” Medicare option, so once one spouse is eligible, you should compare your family plan to a Medicare option and individual coverage for the non-eligible spouse.
However, it can be challenging to make these comparisons and evaluations. Most consumers don’t feel completely confident that they have made the right choice for their family, which often leads to being over-insured.
Some financial advisors are recognizing the lack of healthcare planning advice as an opportunity, and integrating these services into their wealth management and financial planning firms.
Financial advisors can add a level of service to their practice, win new business from prospects and be on the cutting edge of providing comprehensive wealth management by providing a Healthcare Extension from Bernard Health. Learn more about our decade of experience helping families and individuals make the right healthcare choices.
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