Plan for the worst while hoping for the best; a friend of mine usually say that. That’s how he guided his life. I’m good at planning – I plan almost everything. But I do not expect the worst and I always hope for the best. But when it comes to health and retirement, it’s time to hope for the best and plan for the worst.
Health care is and remains one of the most important costs of retirement. Many persons close to the age of retirement do not understand the risks represented by these costs for their financial policy and are unwilling to do so. According to the National Retirement Institute’s 4th annual survey, US workers are “afraid” of the cost of health care after retirement, but some of them care less about their concerns.
Here are some statistics and points to consider:
Remember that in the past, everyone used to work in the same companies, department stores, or manufacturing industries for more than 35 years. During that time, you were made a promise of a pension and you could maintain your health care policy – even for the entire family! In 1997, this figure was 1 in 4 and this figure was only 10% in 2011.
26% of the US population today does not know what the cost of annual health care will be for retirees when they leave their jobs. The burning question is: do you have a budget or do you policy enough for these health problems? If you have not thought about it yet and are considering doing so, you need to know how much of your income or savings you need for additional Medigap or Medicare premiums, Medicare Part B, Medicare Part D and drug costs.
Just released is the new deductible part B that all Medicare subscribers must contend with. It went from $ 167 to $ 184.
To aid you while planning:
You need to have a good idea of the income you will have during the 65 years of your life. These are usually IRAs, pensions, or other social security and retirement accounts. Know what your living expenses are. Write a budget. Do you have a car or a payment at home? How much does food, special events / occasions like birthdays, utilities cost? Be aware of inflation and be careful here.
Get a good picture of your health care costs. This should begin with having a conversation with your financial advisor. If you are 40, 50 or 60, you should discuss retirement cost planning. If you have a consultant, I suggest you take this appointment. One of the most important decisions that a Medicare participant will make is to choose a Medicare health policy. Brokers can help you get the best policy for your needs, your budget, and your lifestyle. Similarly, for those for whom Medicare will not do, there are many Medicare supplemental policies. You need to find time to look around and find the one that best suits your situation.