Estimated Health Care Costs in Retirement

Discuss the basics of your Retirement Healthcare

The Importance of Proper Estimation for Medicare Costs

A properly estimated cost can help you to adequately allocate your finances to make for a more secure financial future for you and your family. Knowing your healthcare costs in retirement planning is an essential factor that must be considered prior to leaving the workforce. Many Americans are unaware of the role that health care costs for retirement medical needs plays in their financial plan. Since the importance of health care costs in their retirement plan is generally unknown among those planning for retirement, the cost is often overlooked all together. For most individuals health care costs in retirement are generally cripplingly underestimated.

Its Likely Your Healthcare Costs In Retirement Are Larger Than You Think

As if the healthcare costs in retirement were not already high enough, figures show that inflation will cause them to steadily continue to increase through 2028. Though you can rely on Medicare and other forms of private medical insurance coverage to assist you with medical expenses, they do come with a cost. In fact a 65-year-old couple retiring today is estimated to pay an average of $19,000 in out-of-pocket for medical costs and premiums annually.

The Effect of The Rise In Medical Care Costs

According to the Medicare Board of Trustees the bulk of what is paid for health coverage, Medicare Part B and D, is projected to inflate by as much as 5.60 percent. Couple this with Medicare’s Income Related Monthly Adjustment Amount (IRMAA) as well as these costs be deducted directly from Social Security benefits the potential for many to be caught of guard is large. In a recent study it was found that among asked individuals who had completed their retirement planning approximately 80 percent of the individuals underestimated their potential cost of health care in retirement. Where the average estimate was $ 50,000. The actual number is more like $354,000.

Risks Should Be Considered When Estimating Health Care Costs In Retirement

In early retirement planning, your mind is likely to be plagued with despairing thoughts regarding inflation and potential market decline. However, as you move closer to your retirement date and eventually cross the line as an official retiree, the risks that you consider to be threatening will change. Though Inflation and market decline will (and should) weigh heavily on your mind still, other risk factors will now come into play as well.

The reality that you forgot to consider health care costs in retirement planning and therefore now face the grim potential of running out of money in early retirement may begin to sink in. That is, assuming that you are one of the many Americans that unknowingly overlooked such an important detail. Another potential risk that you should consider may be that since you forgot to account for health care costs in retirement the likelihood that you will outlive your retirement savings, leaving your family with nothing, is increased. Obviously, these scenarios are frightening to consider given you are already in retirement and perhaps are unable to work to reestablish your savings. However, for those who have only just begun to plan for their golden years, there is still time to properly arrange your retirement budget to factor in health care costs.

Can I Count On Medicare Premiums To Help Cover My Healthcare Costs For Retirement?

Assuming that you are of age to qualify for Medicare (65) you can rely on Medicare to cover most if not all of your healthcare costs in retirement. It literally depends on what type of coverage you select and how you implement that coverage if a medical need arises.

Properly educating yourself on the available Medicare plans and what they cover will help you to make a more informed decision when the time to enroll in a plan rolls around.

Here is a brief overview of the Medicare program.

Medicare Part A
Medicare Part A is referred to as “hospital insurance.” This plan covers inpatient hospital stays, some nursing home expenses and a select hospice facility costs.
Medicare Part B
Medicare Part B is known as “medical insurance.” This plan covers outpatient treatment from doctor visits, some preventative care, but no specialist care and co-pays as well as deductible falls on you.
Medicare Part C
Medicare Part C is what is known as “medical advantage plans.” It combines the benefits provided in Part A, B & C as well as in some cases, includes prescription drug coverage.
Medicare Part D
Medicare Part D covers prescription drug costs after deductible is met.
Supplemental of Medigap Coverage
Medigap Plans cover the “gaps” within Medicare Part A and Part B, like co-pays, deductibles and excess charges.

Do You Know Your Estimated Costs In Retirement? Let Us Help

Have you just begun your retirement planning, or perhaps have already completed it but forgot one not-so-minor detail – health care costs? Not to worry. At Healthcare Retirement Planner, we are here to help. Use our FREE online calculator and get an accurate health care costs figure that you can use to properly prepare your financial budget in a reliable manner.Contact us today to find out more about your mandatory costs in retirement.
What is
Healthcare Retirement Planner (HRP) is a comprehensive solution that helps identify potential problem areas in a retirement plan and design options to minimize the problem.

On an ongoing basis, HRP conducts research and aggregates all data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate information and calculations available.

Within the calculation process there are many variables that need to be considered, as the solutions are customized to each individual’s retirement plan. Variables that are required to analyze financial situations include, but are not limited to: age, gender, location, overall retirement income, types of retirement income, inflation and COLA. HRP has simplified this process.

The process of using HRP is straight forward. Simply by answering a few simple demographic questions, entering retirement asset information and income, along with assorted growth rates, you are supplied with a detailed year by year analysis that projects out 20+ years as to how the investors’ current financial plan will be impacted by their Medicare costs and the impact on their Social Security benefit.
Who is
We are comprised of Financial Professionals, Medicare Specialists, Technology Experts and the foremost authorities on how this one cost will affect your bottom line especially when your health is on the line.

There are many financial institutions that do tremendous work when it comes to asset building, planning for college or creating stock/bond/mutual fund portfolios, but addressing concerns of affording health care costs…well for that, there is us.

Healthcare Retirement Planner was created with one purpose in mind: to provide data, education and tools necessary to help the financial industry create better financial futures and to plan for one of the biggest expenses in not only retirement, but life – their health.

In a time where health costs dominate the media, the political landscape and your bottom line, retirement planning with all of the facts have never been more important.
Origin of Our Data for Healthcare Cost in Retirement
On an ongoing basis, HRP conducts research and aggregates all Healthcare data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate Retirement information and calculations available.
Jester Financial offers research and Service to the Financial Industry, however we do not sell retirement products the general public.