Many Americans bank on the illusion that in their retired years, Medicare – the government-backed health insurance program – will take care of their medical expenses once they have left the workforce.
But according to a report from Fidelity, a couple of about 65 years who desires to retire this year needs an extra $240,000 to finance their out-of-pocket healthcare costs not insured under Medicare. That’s a 4% increase from last year’s estimate by the same report, which came in at $230,000 – but a decrease from the 2010 calculation of $250,000.
Medical inflation is the cause behind the rising costs of healthcare, and because of this, it’s becoming a prerequisite for retirement to incorporate health-related costs into retirement funds.
But setting aside a quarter of a million designated solely for medical needs is a little daunting, which is why Safe Retirement Solutions would like to offer a bit of guidance with regards to how to proceed.
It may not be the advice that you want to embrace, but it’s reality. The fact of the matter is, the earlier an individual retires, the more difficult it is to predict how or what his future health and medical costs will entail. It also allows future retirees to remain on employer healthcare plans while saving for their lives post-workforce.
Work to be Healthy
Obviously none of us make grandiose plans to develop chronic illnesses or undergo invasive medical procedures. But it’s important to try as much as possible to lead a healthy lifestyle and enter into retirement thriving. Lose the belly fat now. Ditch the cigarettes while there’s still time. Get active and make it a challenge to yourself to stay fit. Diseases and conditions like obesity, diabetes, and heart disease will leave you needing to make more trips to the doctor, adding costs to your bills with frequent co-pays. Avoid developing these oftentimes preventable illnesses by pledging to live healthily.
Let Safe Retirement Solutions do the Work for you
The sooner you’re able to factor medical expenses into your retirement savings plans, the better. The financial professionals at Safe Retirement Solutions are here to help you best determine how to invest your money to make the most of it and enter into retirement with a healthy-sized fund in your bank account.
For more information about Professional Financial Planning and Saving for Retirement, or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!
Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.