Some of the biggest costs that you will face in your retirement years relate to health care. As health care costs continue to grow at an exponential rate, it is vital that you put yourself in the position to take on this financial burden. Here are three ways that you can plan ahead for the medical expenses that you will likely incur during your retirement.
Save Specifically for Health Care
The best time to plan for your retirement health care costs is when you are still working. Your savings goals should focus on the health care costs that you will need to cover once you are not on an employee health plan any longer. A regular savings account or a dedicated HSA are both ideal ways to make sure that you have enough money stashed away for these inevitable medical expenses. Medical equipment, such as electric wheelchairs, can cost tens of thousands of dollars. Put yourself in the financial position to handle these costs by preparing for it when you are still healthy.
Assess Medicare Costs
Medicare provides a great service to millions of retired Americans. In order to take full advantage of this service, you need to do your research to find out what you are entitled to receive. It is important to note that Medicare will not cover all of your medical expenses. You can give yourself more financial freedom by considering purchasing one of the many available Medicare supplement plans. If you retire before the age of 65, you will need to bridge this gap in coverage with an additional benefits package.
Educate Yourself
In order to effectively plan ahead for health care costs, you need to empower yourself to be aware of your potential burden. There are a variety of online cost calculators that can help you to determine what your actual costs will be. A good calculator will take into consideration age and specific medical conditions for both you and your spouse. After you combine this figure with your estimated Medicare coverage, you will have a better idea of how much money you are going to have to be responsible for paying.
Taking a proactive approach before you retire will help to ensure that you are prepared for the financial obligations that lie ahead. You do not want to be caught off-guard when the bills start piling up. You owe it to your health to be ready.
If you would like personalized help planning your finances, contact us to see how we can help you!
