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Failure to Plan Can Impact Your Retirement

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Common Retirement Mistakes

One of the most common mistakes when it comes to financial planning in retirement is understanding the short-term costs of healthcare and the potential long-term expenses. One of the keys to a successful retirement is to be ready for potentially rapidly rising healthcare expenses.

The first error is failing to recognize that Medicare has a number of gaps. These gaps may require a participant to pay out of pocket. In some cases, these out-of-pocket costs can be significant, even many thousands of dollars.

The next is when people don’t factor in that medical expenses tend to rise sharply as we age and require more care at higher prices. Out-of-pocket costs for an average 65-year-old retiree on traditional Medicare are projected to rise more than 3x as much, from around $5,300 this year to over $17,000 by age 95.

These costs are averages per person and do not include most long-term care. Costs may be much higher if you have expensive prescriptions. And you’ll pay more in Medicare premiums if your income is higher. Include health care costs as a separate expense in your retirement plan. Assume 6.0% annual growth rate to be conservative. Begin to assess your long-term care alternatives as early as age 50, when the most options are available to you.

A skilled AMBA representative can help you get the benefits you need. Whether it’s a MedSup plan, Long Term Care, or even an emergency medical transport membership, we’re here to help you so you can pursue the retirement you want.

Set up a FREE Benefits Review with an AMBA field agent at www.amba-review.com or call 866-615-4063 Mon.-Fri 8am-5pm CT.

Source: https://www.cnbc.com/2019/07/18/retiring-this-year-how-much-youll-need-for-health-care-costs.html

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