If you’re cruising into your golden years, chances are you’ve spent a fair amount of time dreaming about all the leisure and zero time fantasizing about healthcare costs. Unfortunately, it’s something that you’re better off tackling sooner rather than later. Luckily for you, we’ve got nine ways to help you create a solid plan to manage these healthcare costs!
1. Practice Preventive Care Like It’s Your New Hobby
Getting regular check-ups, screenings, and vaccinations can seem like a chore, but it’s like oiling the engine of your car – it keeps you running smoothly and avoids costly breakdowns down the road. Don’t skip that annual physical! It’s less about poking and prodding and more about keeping you in tip-top shape for your next adventure.
2. Know Your Medicare Inside and Out
Medicare paperwork can feel like trying to learn a new language late in life. However, understanding the ins and outs of your Medicare coverage can be the difference between thinking you’re covered for that injury and getting a bill that makes you want to leave the country. Take the time to understand your plan options, what’s covered, and what’s not.
3. Shop Around for Supplemental Insurance
Supplemental insurance fills in the gaps Medicare leaves wide open, like covering co-pays or international travel emergencies. Don’t just grab the first policy that comes your way. Explore your options with supplemental insurance and make sure you’re getting the best deal that meets your needs before saying yes.
4. Get Prescription Savvy
The world of prescription drugs can be pretty confusing, but getting smart about your medications can save you a bundle. Look into generic options or pharmaceutical assistance programs for reduced costs. Some stores even offer popular medications for free or at a reduced cost, so it’s worth checking them out.
5. Stash Some Cash in a Health Savings Account (HSA)
If you’ve got a Health Savings Account, keep feeding that piggy bank before you retire. When retirement rolls around, you’ll have a stash of cash ready to cover everything from acupuncture to zebra bites (should you get surprisingly adventurous). Remember, an HSA is more than just savings – it’s your secret way of fighting unexpected health costs.
6. Stick to a Lifestyle of Activity and Nutrition
Maintaining an active lifestyle, along with a balanced diet, is a great way to protect yourself from rising healthcare expenses. Your body thrives on quality nutrition and regular exercise! Imagine having enough strength and energy to amaze even the youngest gym enthusiasts well into your later years. If that doesn’t convince you, we don’t know what will!
7. Tap Into the Convenience of Telehealth
Telehealth services have completely changed the way we access medical advice. They allow for consultations with healthcare professionals from the comfort of our homes. It’s a complete game-changer because it can save you time and reduce the inconvenience of traditional doctor visits. Plus, you don’t need to change out of your sweats!
8. Invest in Long-term Care Insurance
Exploring your long-term care insurance might not sound exhilarating, yet it’s very important to safeguard your financial future against the expenses of extended care. Sure, it can be a hefty upfront cost. However, getting such insurance will help you secure a safety net for both yourself and your loved ones for the years ahead.
9. Explore the Opportunity of Participating in Clinical Trials
You could also try participating in clinical trials. They might make you feel a little uncomfortable, but they’re a great way to help with medical advancements while possibly giving you free healthcare services. This option opens doors to state-of-the-art treatments without impacting your finances. However, you should definitely check out the potential risks and rewards before getting involved.
Planning Ahead
In the end, managing healthcare costs in retirement might not be the first thing on your bucket list, but with a bit of strategy, it doesn’t have to be a dreaded affair. Take these tips to heart and keep living your retirement years with gusto. After all, retirement is supposed to be about enjoying life’s next chapter – not worrying over healthcare costs.
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
There comes a time when most workers begin to consider retirement. Today’s economy may make it impossible to consider reducing your regular income. But, as you age, health and family obligations may cause you to feel as though retirement is inevitable. Here are some signs it may be the right time for you to stop working:
1. When You No Longer Love Your Job
Your job may be your means of support, but it should also be something you love. When you’ve been in the same field for several decades, you may feel it’s lost its luster. According to Gartner, a motivational employee recognition plan can inspire an increase of over 11% in employee performance. If such an enticement no longer holds any lure for you, it might be time for you to stop working.
2. When You Have Enough Money to Stop Working
Not everyone can say they’ve made enough money to stop working, but if you have, it may confirm your idea that it’s time to retire. According to CNBC, you should, ideally, have saved 10 times your annual salary by age 67. The same source provides an alternative of having enough to live on 4% of your savings for each year of your retirement. Look ahead to the future, predict how much you need to live on, and then decide if your funds are enough to allow you to retire.
3. When Your Health Prevents You From Working
When your body grows older, you can develop chronic health conditions. These conditions can also make you more prone to injury. According to the U.S. Bureau of Labor Statistics, the year 2021 resulted in over 2 million injuries being sustained at work. If those chronic conditions or the results of your injuries make it more difficult for you to do your job, retirement can be the obvious next step.
4. When You’re Ready for the Next Chapter of Your Life
As you look at your coworkers, and see them effortlessly master technology while you struggle to keep up, it may seem like your role at your company may soon be obsolete. Other employees your age may have already retired, and you may be envious of their new freedom. You may also have new grandchildren you’d like to spend more time with. Your “second chapter” may be beckoning, so it may be time for your first chapter to close.
5. When You Qualify for Social Security or SSI
If you were born after 1960, 67 is the age for full retirement. If you were born before then, the retirement age is younger. If you are 65 years old with a low income, you may be entitled to SSI benefits – just as you would if you were blind or disabled. If either or both of those income sources are available for you, this may confirm your feeling about the need to retire.
6. When the Majority of Your Debts are Paid Off
One reason many people near retirement age continue working may be to pay off debts. Trying to pay debts with the reduced income of a retiree might be too difficult to handle. If necessary, consider a debt consolidation loan while you’re still working and can pay it off. By the time you reach retirement age, you have probably also paid off your mortgage – making it possible to survive living on your social security income.
Keep in mind that when you finally close the door on your working life, it will be an adjustment for you. Some retirees may not realize – until retirement – the extent to which their jobs have become their identity until they retire. The sharp drop in income may also impact you to a greater extent than what you’d expected. If you have a financial advisor, you might ask them to help you determine your readiness for retirement.
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