RETIREMENT • Read Time: 4 min
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 $5,500 a year. Premium costs accounted for 28% 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 $63,000 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.
- MedicareResources.org, March 20, 2018 (Based on 2013 data, which is the latest available.)
- Department of Health & Human Services, 2017
- Genworth Cost of Care Survey, 2017
- 2018 Retirement Confidence Survey, Employee Benefit Research Institute
The content is developed from sources believed to be providing accurate information.The information in the material in 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 professional for specific information regarding your individual situation. The opinions expressed and material provided are for general information, should not be considered a solicitation for the purchase or sale of any security.
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