Money that Buys Good Health is Never Ill Spent

According to the Kaiser Family Foundation, the average person covered by Medicare has out-of-pocket medical expenses in excess of $4,700 a year. Premium costs accounted for 42% of the total, while long-term facility costs, medical supplies, prescription drugs, and dental care claim the rest.¹

With healthcare expenses in the spotlight, it’s incumbent upon us to make sure our retirement strategy anticipates these costs.

But that’s not enough.

Remember, healthcare coverage (including Medicare) typically does not cover extended medical care. And it’s a prospect we shouldn’t overlook.

The Department of Health & Human Services estimates that about 70% of people will need extended care at some point in their lives.²

These annual costs can range widely based on geographic location, from over $60,000 in Oklahoma to nearly $300,000 in Alaska.³ When workers were surveyed, only 16% said they were “very confident” they would have enough money to pay for long-term care in retirement.⁴

Finally, you may want to consider a Medigap policy, which may help cover some of the healthcare costs not covered by Medicare.

Making sure that you are properly insured for your medical costs may help strengthen the foundation of your retirement.

  1. MedicareResources.org, November 23, 2016 (Based on 2010 data, which is the latest available.)
  2. Department of Health & Human Services, 2017
  3. Genworth Cost of Care Survey, 2016
  4. 2016 Retirement Confidence Survey, Employee Benefit Research Institute

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2017 FMG Suite.

Share |
 

Related Content

Should You Tap Retirement Savings to Fund College?

Should You Tap Retirement Savings to Fund College?

There are three things to consider before dipping into retirement savings to pay for college.

Your Changing Definition of Risk in Retirement

Your Changing Definition of Risk in Retirement

A change in your mindset during retirement may drive changes to your portfolio.

Investment Strategies for Retirement

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

 

Have A Question About This Topic?







Thank you! Oops!

Social Security Benefits: How Much Will I Receive

Calculating your potential Social Security benefit is a three-step process.

9 Facts About Social Security

There are things about Social Security that might surprise you.

Social Security: Two Benefit Strategies Eliminated

Here are several important changes to Social Security that may impact how and when you can begin taking income benefits.

View all articles

Inflation & Retirement

Estimate how much income may be needed at retirement to maintain your standard of living.

Estimate Your RMD

Help determine the required minimum distribution from an IRA or other qualified retirement plan.

Potential Income from an IRA

Estimate your monthly and annual income from various IRA types.

View all calculators

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

Retirement Plan Distributions

There are a number of ways to withdraw money from a qualified retirement plan.

View all presentations

How to Bake a Pie-R-A

Roth IRAs are tax advantaged in a different way from traditional IRAs.

Retirement Redefined

Around the country, attitudes about retirement are shifting.

Rightsizing for Retirement

What does your home really cost?

View all videos