Post On: July 22, 2019
A recent white paper released by HealthView Services emphasizes that healthcare should be an integral aspect of any retirement plan. The data reveals the projected cost of healthcare, how medical conditions influence that amount, and how to plan for and reduce healthcare costs for retirees. Some of the key findings include:
As you would expect, costs will be higher for those that are not yet retired than those who are retired now. According to the paper, costs at the end of retirement are much higher than at the beginning, as health begins to decline and more care is needed. When considering retirement, it’s important to remember that those who are currently retired are paying less than what currently working Americans will eventually pay.
Actuarially projected total lifetime healthcare costs for an average healthy 65-year-old couple retiring this year will be $387,644 in today’s dollars. It is imperative for individuals not only to understand how to plan for healthcare costs in the future, but also how to potentially diminish that amount when saving for retirement.
Because Americans are living longer, the implication is that there will be higher healthcare costs throughout retirement. Health-related, modest investments while employed can help mitigate high costs and surprise expenses later on. These investments not only include dedicated financial savings and tax-advantaged vehicles, but also physical lifestyle and mental health investments that are proven to reduce the need for high-cost care in the future.
The paper reveals that only 26% of American workers have calculated the monthly income amount that they will need to care for themselves throughout retirement, despite the fact that 61% are “significantly concerned” that they may not be able to cover their expenses.
Healthcare is one of the greatest expenses of retirement, but with the proper planning and diligence, more Americans can enter into retirement anxiety-free.
The professionals at Ambassador Advisors are well equipped to answer questions and to help you strategically plan for your future retirement. Even if retirement is a long way off, it is never too early to start financial preparations, so that you are not caught off guard by healthcare costs.
Call Ambassador Advisors today for expert financial wisdom and professional guidance.
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