You are probably well aware that healthcare is something you will need to plan for in retirement because, unfortunately, as we age, our medical expenses don’t go down. Therefore, it’s important that you have some type of healthcare plan in place when you retire. There are a few ways to go about this. If you are retiring before your spouse, you could always join their plan, which most companies allow. If you are over age 65, you are eligible for Medicare, which many Americans rely on for healthcare coverage in their twilight years. Another option is to purchase health insurance through your state’s Health Insurance Marketplace. Finally, there is also the health savings account (HSA) route, which has become somewhat popular in recent years. If you have an HSA that you’ve been able to grow into a reasonable chunk of change in recent years, then you might include that as part of your medical expenses coverage. Regardless of what you decide to do for health insurance during retirement, you will want to do your research. That means seeing what your options cover, what their costs will be, and whether each one fits what you are looking for regarding medical coverage. You don’t want to pick a plan that’s too pricey or doesn’t cover illnesses/conditions that you may already have or are highly susceptible to. However, you also don’t want to overpay for coverage that may eat a good chunk of your retirement savings unnecessarily. There are a lot of online resources available to help you research and even pick the plan that’s right for you. If you are worried about costs and how they may impact your retirement finances, you should also speak with a certified financial planner, who should be able to give you an idea of your budget or financial thoughts.
Medical expenses are one of the biggest retirement savings killers. All it takes is one unplanned medical emergency or issue and the savings you worked so hard to build up can be decimated or your retirement plans left greatly altered. Thus, along with your finances, you should also be thinking about health insurance in retirement and how you plan to cover yourself once you stop working. This will require exploring Medicare options as well as possible employer options (i.e. if it is part of a retirement package or retirement benefits). As part of that process, you will want to determine what those insurance costs will be and how that factors into your retirement savings. If you have questions regarding saving for retirement, you should speak with a certified financial planner.