HOW TO MAKE HEALTH INSURANCE PART OF YOUR RETIREMENT PLANNING
Health insurance should be as important as auto and homeowner’s coverage, if not more so. As entrepreneurs in the fields of finance and insurance, we're always surprised when I work with professionals who haven’t considered the costs of their health coverage when they retire.
Equally concerning are estimates that the average 65-year-old couple can expect health care costs of more than $275,000 in their retirement years. Unless their retirement packages include ongoing coverage and they’re eligible for supplemental insurance, many people risk spending the bulk of their retirement savings on the aftermath of a major medical event.
With some careful planning, it's possible to avoid that dreary future and focus on enjoying retirement rather than the effect of potential claims on a fragile nest egg.
Why Health Insurance Matters In Retirement
Wondering why health insurance should be a part of your retirement planning? Let us explain:
The future of healthcare is uncertain. With the proposed changes to mandated health insurance coverage and programs pulling back from the Affordable Care Act, Americans about to retire find themselves in a gray area for health insurance. Many don’t have coverage and are worried about choosing a provider amid such uncertainty.
Few companies provide health insurance in retirement packages. According to the Kaiser Family Foundation, employer-provided coverage won’t be as much help to retirees as it used to be. Its research indicates that only 25% of large employers even offer retiree health coverage, compared with the 40% of employers who offered it in 1999.
Additionally, the current administration’s intent to amend the ACA is clear, but the details of its plan to change federal insurance laws are not. For anyone nearing retirement, the potential impacts to insurance coverage and costs should be of special concern. For instance, the reintroduction of high-risk pools for pre-existing conditions could lead to declining coverage and higher premiums for many.
Why do you need health coverage?
Health insurance can help you stay healthy. With health care reform, preventive services are covered at no cost to you when received from a network doctor. Examples include:
Screenings, like cholesterol tests
Vision exams for kids
Annual check ups
You can be careful every day and still have an accident or get sick. Without health insurance, you’d face unexpected bills that could put a strain on your budget – and put your savings at risk.
High Cost of Care
Health insurance protects you from the big medical bills that often come with accidents and illness. In the U.S., health care costs an average of $7,681 per person each year and these costs are expected to rise through 2018
AFTER ALL, RETIREMENT IS THE LONGEST VACATION OF Y OUR LIFE.
The problem is 57% of American workers have saved less than $25k for retirment, and 28% have saved less than $1,000.
ARE YOU PLANNING FOR YOUR RETIREMENT LIKE YOU PLAN FOR VACATION?
There are solutions that will help you protect your life, your retirement, and your legacy.
Take the fear and unknown out of the equation and put retirement securely within your reach.