Monthly Health Care Costs In Retirement
Having a reliable estimate of what you can expect to pay annually and monthly on health care costs in retirement will help you better create a more practical financial plan. When looked at as monthly health care costs in retirement, the overall picture of what you can expect to pay in medical expenses throughout retirement is not all that scary. However, if you pan out to see the grand scheme of things it becomes a whole different story.
Contrary To Common Belief, Monthly Health Care Costs In Retirement Matter
Health care costs in retirement can be expected to be your largest expense in retirement and also your greatest risk factor. Therefore, contrary to common belief, they matter. Regardless of how well-thought out a financial plan may be, if monthly health care costs in retirement are not factored into the budget, the plan is destined for failure. That is a fact.
Most people do not realize the importance of considering monthly health care costs in retirement and so they neglect to include them into their financial futures. This is a big mistake. In fact, a Nationwide Survey “Health Care Costs in Retirement” Consumer Study 2012, found that 4 out of every 5 people planning their retirement had no idea what their estimated monthly health care costs were. Without a precise figure to base your budget on, how could you accurately estimate your medical expenses in retirement? You can’t – that is the problem and that is why your monthly health care costs in retirement matters.
You Monthly Health Care Costs In Retirement Will Probably Be More Than You Think
As if health care costs in retirement today were not already expensive, these mandatory expenses are expected to continue to rise steadily over the next decade. The rate at which health care costs in retirement are estimated to inflate is a consistent average of 7 percent through 2020. As if that we not bad enough on its own, factor in increased taxes and decreased Social Security benefit and it suddenly becomes apparent why proper financial planning is so very important to maintaining financial security in retirement.
Are you aware that the average out-of-pocket health care costs for a 65 year old couple retiring today is $240,000? If not, do not feel bad. You are just like a large majority of Americans that are clueless in terms of what health care in retirement costs.
What Role Will Medicare Play In Covering My Monthly Health Care Costs In Retirement?
Despite what many Americans believe Medicare does not cover all medical expenses in retirement. Let me repeat that (because it is worth mentioning twice), Medicare does not cover all medical expenses in retirement. Not even close, in fact. According to the Employee Retirement Benefit Institute Medicare only covers a maximum of approximately 51 percent of health care costs in retirement.
Medicare has many parts to it, each of which serves a different role. Having a thorough understanding of each plan and what they cover will ultimately help you to select the plan that is right for you.
– Medicare Part A
Medicare Part A is known as “hospital insurance” because it covering inpatient hospital treatments is its purpose. It may also in some cases cover certain nursing home expenses and even hospice care.
– Medicare Part B
Medicare Part B is known as “medical insurance” because it covers outpatient doctor’s visits and treatments. It does not cover specialist care, co-pays or prescriptions.
– Medicare Part C
Medicare Part C is known as a “medical advantage plan.” This type of plan works with a private provider to bring you the best of each Medicare option (A & B) as well as prescription drug coverage in some cases.
– Medicare Part D
Medicare Part D covers a percentage of prescription drug costs after deductible is met.
In order to better understand what your monthly health care costs in retirement will be, it is important that you take the time to comprehend all of your medical coverage options prior to creating your financial retirement budget.
Do You Know What Your Monthly Health Care Costs In Retirement Will Be?
A recent study released revealed that a mere 8 percent of Americans that had completed their financial planning for retirement had accounted for health care costs. Considering that health care costs in retirement are the most expensive budgetary item, as well as the most risky, this number is a bit shocking.
If not accounted for, health care costs in retirement are capable of a catastrophic disastrous impact on even the finest tuned of retirement plans. Have you considered your health care expense in retirement? Do you know what your monthly health care costs in retirement will be?
Having Trouble Estimating Your Monthly Health Care Costs In Retirement? Let Us Help
Estimating your medical expenses in retirement can be tricky. There are countless factors to consider, many variables and much room for error. A budgetary item as important and potentially impactful as health care costs should not be taken lightly. Therefore, we recommend that you let us do the dirty work.
Sit back and relax. With just a few short and simple questions you can have reliable results that offer you ample peace of mind in regards to your future financial security. Use our FREE online calculator for fast, easy and accurate estimates of what you can expect your monthly health care costs in retirement to be.
Who is Jester Financial?
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.