Friday, May 18, 2018

Avoiding High Healthcare Costs during Retirement

Motivational speaker Brad Liebe addresses groups at seminars and conventions on topics such as goal setting and organizational growth. Also a financial consultant, Brad Liebe is the owner of KK&B Financial Services for Seniors, where he helps seniors devise financial plans for retirement

Healthcare will be a significant cost outlay in your retirement years. According to HealthView Services, today, a 65-year-old male retiree can expect to spend $189,687 on healthcare, while a woman will spend $214,565. While all adults are eligible for Medicare once they turn 65, Medicare does not cover all medical expenses. In fact, it only covers about 51 percent of them. Seniors still have to pay premiums, deductibles, co-pays, and out-of-pocket costs for prescription drugs as well as dental and vision care. 

If you want to be able to cover your healthcare costs during retirement, you should start planning early. Talk with your financial planner about the various ways you can avoid high healthcare costs during retirement. One option is to open a healthcare investment account separate from your retirement account or, if you have a high deductible on your health plan, open a tax-advantaged health savings account. If you are already retired, you can opt for long term care insurance to pay for assisted living and home care costs. This type of policy is costly, but there are less expensive short term care alternatives.