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Three surprise healthcare costs that can affect retirement savings

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How to prepare

Do your clients have the information they need to effectively plan for healthcare costs in retirement? More and more advisors are recognizing that healthcare is an area of significant concern when it comes to retirement savings, but many retirees are still not planning for all of their potential costs.

Financial advisors have the opportunity to help clients better understand what to expect, and how to plan ahead for healthcare costs. In particular, here are three surprise healthcare costs that many Americans are not currently planning for.

By developing expertise in these areas in-house or partnering noncommissioned insurance advisors, financial advisors and wealth managers can give peace of mind to clients.

Part B premiums

According to a 2018 Nationwide Retirement Institute Survey, more than half of respondents did not know that Medicare Part B is not free. Even if you have worked and paid Social Security taxes, there are premiums associated with this coverage. Clients with higher incomes may pay up to $460.50 per month in Part B premiums. This is one reason why finding the right Medicare strategy is so important.

Long-term care

Long-term care, including nursing homes or assisted living facilities, are not covered by Medicare. Some consumers find it valuable to obtain long-term care insurance coverage to protect their retirement savings in case long-term care is needed.

Out-of-network bills

Depending on the Medicare strategy chosen by your clients, it is possible that their insurance coverage includes networks, or a list of hospitals and doctors that take their insurance. In the event that a client visits an out-of-network hospital, their Medicare plan may cover less or none of the bill. Depending on the acuity of the healthcare experience, these bills could be high.

To help clients avoid these surprise costs, many financial advisors are partnering with Bernard Health to offer a Healthcare Extension. To learn more about the Healthcare Extension, click below.

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