Healthcare costs in retirement are rising: Between increased Medicare premiums, higher prescription drug prices, out-of-pocket expenses, and long-term care costs, retirees can end up spending a large portion of their savings on their health. Good health is priceless, but no one has an unlimited amount of money in retirement. This is why healthcare planning is such an important part of an overall retirement plan.
Healthcare costs are particularly hard to plan for because they are unknown. No one knows if they will become ill later in life, or how much that illness will cost them. The amount a retiree could end up paying for healthcare varies widely, and no one wants to be caught off guard 10, 20, or 30 years into their retirement.
One of the biggest healthcare expenses retirees can encounter is the cost of long-term care. No one likes to think about getting to the point in their lives where they can’t perform basic activities of daily living, but the reality is that there’s a good chance it will happen. A research study from the National Bureau of Economic Research estimated that the average 50-year old has approximately a 53% to 59% chance of entering a nursing home. When you consider that the average monthly cost for a private room in a nursing home is $7,698, financial preparation seems important. Medicare only covers long-term care for a short period of time, under very specific circumstances, and there are stringent requirements for qualifying for Medicaid.
We can discuss a variety of options for planning for long-term care costs including:
- Traditional long-term care insurance
- Hybrid long-term care life policies
- Paying with a Health Savings Account
- Effect on your estate and legacy plan
At Brogan Financial, we understand that your healthcare needs are unique and we can help tailor a retirement healthcare plan to fit you and your family.
"Health is like money. We never have a true idea of its value until we lose it." – JOSH BILLINGS
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