Retirement Planning: Healthcare
A cold hard fact in retirement is health care cost. The problem is most retirees and preretirees have no idea concerning future health care cost, fail to consider the impact of futur health care cost even for healthy retirees and will not consider the possibility of over whelming cost during retirement. A 2011 study by the Transamerica, the Insurance company, center for Retirement Studies found that more than 40% of Americans do not have a strategy to reach their retirement goals. Of those who do have a strategy, only 50% have considered and planned for healthcare cost, but less than one-fifth of these factored in long-term care insurance.
The truth is we refuse to consider the subject, we believe it won't happen to us. We have Medicare with Part B and D or an Advantage plan and think that should be enough, but the truth is they do not provide full coverage. 50% of individual over 60 will spend time in a nursing home from a few day to months even years. Medicare and Advantage plans provide very limited nursing home care. For most of us Medicaid is not an option or one we do not want to consider or qualify to receive.
When it comes to long term retirement planning most, including advisors, have a serious misconception about the cost of future health care. When ask to estimate most guess around $5,261 a year. However, a 2010 study found that a 65 year old health couple who retire today and lived for 20 years could spend as much as $10,750 in today’s dollars annually. This is $15,862 in the 10th year and $22,592 in the 20th year at medical inflation of 3.6% and this is for health seniors.
Regardless of how well you plan investments, income or asset accumulation, failure to plan for health care cost can leave you depending on Social Security, children or family, not a place you want to go. Today, the biggest concern of those planning for their retirement or now in retirement is running out of money yet less than 35% of retirees have an organized written plan and less than half of these have kept it up to date with periodic reviews and updates. As a wise man once said, failing to plan is planning to fail.
Is now the time to have a conversation concerning your plans for retirement income and how you can develop a retirement income you can count on? Time is not on your side concerning retirement planning; regardless of when you plan for retirement it will get here before you know it. A conversation with us today could save tomorrow. Please call us at 888 270 9870 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it. , today!
