Retirement should be a time to look forward to. However, many will worry about the transition from paycheck to Social Security check and from company insurance to Medicare. The latest study from Nationwide Retirement Institute shows that 73 percent of well-to-do seniors say their retirement-related fears are centered on the rising cost of healthcare. In Texas and elsewhere, 70 percent of seniors age 65 and over will need long-term care over the course of their lifetime.
According to the Bureau of Labor Statistics, a typical retirement period spans about 18-years. Studies show that a 65-year-old man will spend upwards of about $189,000 and a woman of the same age will spend $214,000 on healthcare during retirement. These figures do not include costs for long-term care, which can be astronomical.
It is important for seniors to save for healthcare expenses in retirement and to be knowledgeable about Medicare coverage and the different plan options available. Some may benefit from purchasing supplemental insurance or a Medicare Advantage plan. Also available is long-term care insurance, and if purchased early, there may be discounts on premiums. These policies can help ensure that one can manage healthcare expenses.
Regardless of a person’s wealth, everyone should be well informed about the cost of healthcare and long-term care during retirement. Individuals should determine how much money will be needed for healthcare expenses, save as much as possible and secure the right insurance. Residents of Texas may consult an attorney who is well versed in the areas of retirement planning and can help them navigate healthcare after retirement.