Health care costs are without a doubt one of the greatest unknown factors we typically deal with when helping people decide exactly how much income is needed in retirement. Sure, Medicare will cover many of the costs for retirees past age 65, but what if you’d like to retire before then? And even if Medicare foots most of the bill, gap insurance is usually necessary to reach the full coverage desired.
This doesn’t even consider the fact that many changes have been proposed to the Medicare system. Most proposals I’ve seen, however, are designed to affect only those currently under the age of 55 but who knows what kind of changes will actually pass both houses of Congress and receive Executive approval.
A recent article from Yahoo Finance covers some things everyone can do to limit health care expenditures. Although it’s an article that talks generally about limiting costs for all people there is likely something useful for retirees specifically. Read the article here.
With legislation constantly changing and the new health care bill itself hanging in the balance, it can be extremely difficult to have any level of certainty going forward. With everything you have to be concerned with funding for the next several decades, thoughts of rising health care costs can be quite unsettling. It seems as though you’ll have to become a student of the system in order to get the coverage you need most efficiently.
For starters, review the article mentioned above to see if anything makes sense in your specific situation. Every situation is different and that goes for both retirement income and health care so solutions for you in particular probably deserve individual attention. If you need help wading through the process, give us a call. We’re great at digging into the details and stand ready to assist.
Take care and have a great week!
Bryan J. Anderson