Retirement can be a rewarding time, but it does have challenges. Among the biggest challenges a client faces is the cost of health care.
During the years when they are planning and saving for retirement, they are constantly managing the risks to the financial plan such as inflation and potential market declines.
But once retired, these risks don’t vanish. Inflation and market risk are amplified and new risks are introduced — outliving savings and leaving less money for spouses or other family members.
Among these new risks they face in retirement is the cost of health care.
Health care is a big-ticket expense for most retirees, especially with rising costs and the likelihood of needing long-term care. If they are not prepared for these expenses, it can put pressure on other aspects of the retirement financial plan and limit the choices they can make later in life.
Many people are surprised to learn, upon signing up for Medicare, that there are costs involved with the program. Even if they have paid into Medicare, they also face monthly premiums and cost-sharing provisions once they are enrolled in the program.
Planning ahead for the likelihood of needing long-term care (LTC) can make the difference between financial security and devastation. Long-term care is a topic most people don’t want to talk about because they think it means “nursing home.” But the fact is most long-term care happens in the home, while others receive assisted living care at community facilities.
There’s a strong likelihood you or your spouse will need long-term care at some point after age 65. And the total cost of LTC treatment can easily approach or exceed $200,000.
You may also think Medicare or retiree health insurance benefits will pay for long-term care expenses. This is generally not true.
The fact is, the burden for paying LTC costs rests almost entirely on individuals and their families. That’s why planning in advance for a long-term care needs is important for preserving financial choices and your family’s financial security.
The Health Care Cost Assessment takes information you provide about your health history and family background and compares it with current trends in health care utilization. The report you receive shows you a personalized view of your anticipated health care costs, including long-term care, throughout retirement.
Your personalized assessment can help you better understand how expected health care costs can affect their retirement, and enable you to develop a plan around your family’s specific needs.
Email us at protect@termsavers.com for your free personal health care assessment
