How to Manage Your Retirement Health Care Costs

Health care in retirement can be a big-ticket items. Some experts estimate an average sixty-five year old retired couple in 2021 would need approximately $300,000 in after-tax savings earmarked for health care costs in post-work life, even with medicare.

Those costs sound daunting, right? Lucky for you there are steps to take to keep costs as low as possible. With the right planning, smart insurance choices and a good understanding of your health and coverage needs, we can help strategize and advise you on the right health insurance plan to manage your health care bills.

Take Advantage of an HSA

A health savings account allows you to put pretax money aside for medical expenses. You’re able to invest the funds, and both the principal and the earnings are tax-free if you use them for eligible medical costs. You can use them whenever you’d like! To use an HSA you must have a high-deductible plan, however. In 2021, one can save up to $3,600 pretax as a single individual or up to $7,200 if you have family coverage. This can be a great savings tool, as long as you contribute to it regularly.

Long-Term Care Planning

People don’t like to talk about it because it’s uncomfortable, but planning can help you prepare for a change in circumstances. It can be as easy as purchasing a traditional long-term care policy or a hybrid insurance product that combines permanent life insurance with a long term care rider. You could also self-insure by setting money aside annually for long-term care expenses. 

Selecting the Right Medicare Plan

We can help you find the best Medicare policy once you turn 65, one that includes your preferred doctors, regular medications, and help you avoid high out-of-network costs and out-of-pocket costs. We’re happy to help compare options and ensure you have the best plan for you.

Ask questions

We encourage all of our clients to be active in their health care, no matter what life stage. We’re also there to provide advice and options that best fit your needs. Questions? Give us a call — our agents are ready and waiting to help!

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