How to Plan for Retirement With Higher Health Care Costs

By James O'Neal

1 in 3 Americans has $0 saved for retirement.

When it comes to retirement, there are two categories we need to be careful not to fall into.

The first group is the one previously mentioned. This alarming statistic raises concerns because there are many Americans who are reaching the age of retirement but are forced to work due to the inability to resign.

These are the ones who have not taken advantage of 401k plans offered by previous employers and/or were not aware of this benefit.

The second is the group who have planned for retirement but have not factored in the rise in health care costs.

It’s no secret. As times goes on, healthcare costs begin to rise. And if you’re not careful, you’ll find yourself in debt that could not only affect you but your family as well.

We don’t want anyone to go through this kind of a headache. This is why we’ve provided you with the ultimate list on how to plan for retirement.

What Do The Numbers Look Like?

As you get older, you’ll begin to realize that medical emergencies begin to happen more frequently. What was once a basic out-of-pocket expense, turns into unexpected, ghastly expenses that can be inconvenient if you didn’t plan properly.

In order for you to know the severity of healthcare costs, we figured we’d crunch some numbers together.

According to The National Public Radio, the average American makes $50,000 a year. In this salary, bills, vacations, medical, and mortgages are able to be kept up with and maintained.

According to the Fidelity, a 65-year old retiring couple will need $280,000 alone just to cover healthcare costs.

This number doesn’t necessarily include things like over the counter medicine and long-term care. And as you can imagine, that number is only rising.

What’s Your Top Advice on How To Plan For Retirement?

There are a variety of factors that go into lowering this average and increasing your savings. But the trick is to work smarter — not harder.

Here’s what we’ve got:

Lower Your Medicare Costs By Choosing A Healthier Lifestyle Everyone doesn’t always know how to plan for retirement, but there are a couple of things you can do in order to prevent high premiums. Choosing a healthier way of living is going to be one of them.

Because Medicare companies base your cost on factors like whether or not you smoke cigarettes, exercise daily, and consumption of fruits and vegetables — you’d be surprised how much money you’re able to save simply by making healthier decisions.

Consider Your Saving Strategy You’d be surprised how many employers offer their employees different savings plans such as the Health Savings Account. Plans like these serve as great resources that help you save during your working years.

How does it work? With every paycheck, you’re able to save a portion that goes into a savings account strictly to be used for medical necessities. These contributions are usually excluded from your gross income.

And the best part? The interest your accrue on this account (yes, you accrue interest) is completely tax-free.

Know What’s Covered Just like anything else, we urge you to take the time and read your benefits and see what your Medicare insurance covers.

The last thing you want to when planning your retirement is to miss the fine blueprint because you didn’t read your policy thoroughly. Some companies are known for using misleading verbiage that ends up costing policy owners a fortune.

Fortunately, companies like ours are able to provide coverage for people from all walks of life. Be sure to contact one of our experienced agents and find the coverage that’s right for you.

Come Up With A Plan For What Medicare Doesn’t Cover Medicare supplement insurance serves as a tremendous help for those who are entering into retirement.

Unfortunately, there are something’s that are not covered by the Medicare policy. These include but aren’t limited to:

  • Vision and dental
  • Hearing aids
  • Glasses
  • Homecare nursing
  • Long-term care

It might not seem like a big deal for those who don’t struggle with vision, dental, and hearing impairments. But as you grow older, you can’t stop these things from happening.

Unless you’re willing to spend a large amount of money on these services without coverage — you need to start thinking of a game plan that will help save money in the long run.

Thankfully, there are plenty of alternatives. Let’s take dental services for example. Did you know that dental schools offer the same services as regular dental offices for a fraction of the cost?

You don’t have to be an expert in knowing how to plan for retirement, but knowing that there are alternatives for needed services can save you a lot of money in the long run.

Looking Into Getting New Insurance? Let Us Help You

No one is ever born with the knowledge on how to plan for retirement. And the process could be extremely overwhelming when you’re not exactly sure what to do. We know this.

The market is full of insurance companies claiming to offer you the best rates. But unfortunately, not all companies put the customer first when it comes to matching benefits that fit their needs.

Here at O’Neal Insurance Group, we can help you identify Medicare plans that fit your coverage needs. Because we are an independent insurance agency — your experience will always involve a personal feel. We work with you and for you.

Be sure to contact us if you have any questions regarding the coverage that’s right for you. Experts are waiting and guaranteed to return your call within 1 business day.