Consider Your Health

Are you under the impression you will be healthy forever? Think again. If we knew how long you would live, planning for retirement income would be much easier. Life expectancies will vary, but in general, people are living longer than ever before. That means your retirement could last much longer than your parents’ or grandparents’ retirements. The longer you live, the more factors like health care costs and inflation are likely to impact your retirement income. We can help you approximate your life expectancy and help you prepare for the possibility of long life and long retirement.

Health care costs continue to be a top concern of retirees and those nearing retirement, and the unpredictability of one’s future health and rising medical rates make budgeting for retirement health care quite a challenge. At the very least, you’re underestimating what those costs might be. It’s estimated that a 65-year-old married couple that retired in 2016 will need about $260,000 for health care costs in retirement.[1] However, an effective retirement playbook includes careful consideration of potential health care expenses. Our firm can help you consider your options for providing income for potential health care costs in retirement.

It’s estimated 70 percent of those over 65 will require long-term care at some point in their lives,[2]and the average cost of a private nursing home room is more than $92,000 a year![3] Maybe the age at which you plan to retire is far away, or maybe it’s closer than you want to admit. It doesn’t matter.

The fact is, people are living longer than ever before, which means their savings need to last longer than ever, at least 20, 30 or possibly even 40 years. Saving and planning for your financial future should be high priorities.

Once you turn 65, you’ll be eligible for benefits under Medicare, but you still may want to carry supplemental insurance to pick up costs that aren’t covered. You may want to start looking at supplemental policies before your retirement day arrives.



[1] https://www.fidelity.com/about-fidelity/employer-services/health-care-costs-for-couples-in-retirement-rise

[2] http://online.wsj.com/ad/article/longtermcare-future

[3] https://health.usnews.com/wellness/articles/2016-11-16/how-to-pay-for-nursing-home-costs

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