Retirement doesn't make healthcare expenses disappear.
Even with health insurance or Medicare, a retiree may still encounter premiums, deductibles, copayments, prescription expenses and services that aren't fully covered.
Retirement planning isn't only about accumulating money. It's also about understanding what that money may eventually need to pay for.
Why This Matters
Many people think about retirement primarily as an income question: How much money will I receive every month?
But expenses matter just as much.
A retirement plan that accounts for housing, food and travel but gives little thought to healthcare may be missing an important part of the picture.
Areas Worth Reviewing
Consider:
- Health insurance or Medicare premiums
- Prescription expenses
- Deductibles and copays
- Dental care
- Vision care
- Hearing needs
- Services not covered by your plan
- Potential long-term care needs
Don't Confuse Healthcare With Long-Term Care
These are related, but they aren't necessarily the same thing.
Long-term care can involve help with everyday activities such as bathing, dressing or eating.
Someone may need this assistance even when they aren't receiving the type of acute medical treatment people normally associate with health insurance.
Questions Worth Asking
- What healthcare coverage will I have after I stop working?
- What will my premiums be?
- What expenses will I pay myself?
- What happens to my employer benefits?
- When will Medicare become part of my picture?
- What expenses might Medicare or other insurance not cover?
- How would a significant care need affect my retirement assets?
GEMACE Perspective
Retirement planning isn't only about accumulating money.
It's also about understanding what that money may eventually need to pay for.
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
How Does This Fit Into Your Life?
GEMACE LifeMap™ begins with your family, responsibilities, goals, concerns and what you're already counting on before discussing possible solutions.
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
Educational Information
This material is provided for general educational purposes only and is not intended as individualized insurance, financial, investment, tax or legal advice. Individual circumstances vary. Insurance products, features, availability, eligibility, costs and policy provisions vary by insurer, product and applicant. Review actual policy documents and consult appropriately licensed or qualified professionals regarding your individual circumstances.