Are You Prepared for Retirement Health-Care Costs?Submitted by Shoemaker Financial on June 11th, 2018
Paying for health care in retirement is not an easy task. Despite rising costs and increasingly complex coverage requirements, you can take steps today to help ensure you’re not struggling tomorrow. As you explore your own retirement planning and health-care expenses, here are some facts to keep in mind:
Fact 1: We Are Living Longer
The longer you live, the more planning you’ll have to do to maintain a prosperous retirement.
Fact 2: Health Care Could Costs Could Rise
Health care will be one of the most expensive responsibilities you have once you retire.
To prepare for retirement, you have to face reality: As your health declines, your costs will rise.
Here’s an example of a cost breakdown:
These costs include increasing prescription drug prices and higher medical care costs.
Long-Term Care (LTC) coverage
Retirees usually receive diagnoses later in life for three common ailments: stroke, Alzheimer's disease, and cancer.
Other miscellaneous costs depend on your insurance and Medicare coverage
These include ongoing costs for items such as vision and dental care, co-pays, and any out-of-pocket expenses (not adjusted for inflation).
Fact 3: Medicare Part A and Part B Won’t Cover All Your Costs
Retirees who receive Medicare will not see all their extra costs covered. In fact, Medicare Parts A and B do not cover these health-care costs:
- Eye exams
- Hearing aids
- Most dental care
- Routine foot care
Making sure you have adequate insurance and income to cover supplemental expenses will help you prepare for any gaps. Calculate your potential retirement health-care costs at AARP Health Care Costs Calculator.
Ultimately, your specific retirement goals, health, savings, and other unique details will determine any additional funds you may need to cover your health-care costs. If you’d like to explore your planning needs against your current financial standing, and learn how life insurance and annuities could further help meet your goals, we’re happy to help.
These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59 ½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but tax and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals.
Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods.
Securities and Investment Advisory Services offered through Securian Financial Services. Member FINRA/SIPC. Shoemaker Financial is independently owned and operated. Shoemaker Financial 2176 West Street, Suite 100, Germantown, TN 38138. Neither Securian Financial Services, Inc. nor Shoemaker Financial are affiliated with Platinum Advisor. No. 2093781 DOFU 4.30.18
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