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Saving on Healthcare in Retirement

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Thursday, October 8, 2020

Once you retire, you will have to cover many expenses. There are, of course, the basics costs you will have to shell out for rent or mortgage payments. There is also the cost of vehicles and food, as well as other amounts you will have to consider.

A study found that a senior couple could possibly require more than $320,000 to be able to have a 90 percent chance of dealing with out-of-pocket costs for their healthcare. This includes the extra money you have to come up with for drug prescriptions and premiums for Medicare. This is frightening, given the fact that this still leaves a 10 percent chance you would not be able to cover it. You’d think that having over a quarter of a million dollars would be plenty, but for many, it’s still not enough if they get sick or need medical care in later years.

Here are two ways to make sure you don’t get caught with no way to get yourself well:

  1. Get preventative care

Getting regular check-ups for certain diseases and conditions rather than waiting to be struck with bad news you weren’t prepared for is a good idea. This way you catch things early. Another advantage is if anything small comes up, it’s taken care of swiftly and doesn’t impact other conditions or aspects of your life or livelihood.

  1.  Long-term care insurance

This is a good option, considering statistics show as many as 70 percent of seniors over the age of 65 will need help in later life to the point they need custodial care. Look into policies to see how much premiums would be as well as what the policy you’re checking out covers. If you do need to move into a care facility, Medicare will provide no coverage at all for either nursing home care or home health services. Paying for it yourself could set you back as much as $100,000 a year, if not more. If you’re going to need help with the routine activities of daily living, then getting a long-term care policy in place isn’t just a good idea, but a necessity.

Getting your healthcare in place so you aren’t worried about getting sick is something you should be thinking about very seriously. As you get older, many things could come up unexpectedly. It’s not just a simple question of, will you be able to afford it.?

It's just as important to look into ways to stay healthy and well. Good nutrition and exercise can help you stay well or head off a health issue at the proverbial pass.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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