Be Prepared: Medical Expenses in Retirement
You may think that you don't need to worry about health care costs after you turn 65 and are eligible for Medicare. But you still have to pay some premiums and out-of-pocket expenses, and the numbers can add up over time.
A recent study by Fidelity found that a 65-year-old couple retiring in 2020 will pay an average of $295,000 in health care costs over their lifetime, a 3.5% increase over the 2019 figures. That number includes Medicare premiums, deductibles and copayments, or coverage to fill in the gaps.
The following steps can help you prepare for these expenses in retirement and minimize your health care costs:
Have a plan for long-term care expenses.
Take advantage of other ways to manage your health care costs.
Contest the Medicare high-income surcharge when you retire.
Make the most of Medicare open enrollment each year.
Build up tax-free savings in a health savings account.
Understand the costs and make strategic moves to fill in the gaps.
Work with an agent you trust for advice and guidance - don't go it alone!
Michigan residents and employers can call on RCB & Associates, LLC, for all of their health insurance and related needs at 616-233-9050. Click here to read the original U.S. News article in full detail.