Carstens Financial Group
  • Home
  • About Us
    • Pro-Am
  • Services
    • Retirement Income Strategies
    • Tax-Efficient Solutions
    • Investment Planning
    • Long-Term Care
    • Estate Preservation
    • Securities
  • Resources
  • Blog
  • Contact

Blog

How to Manage Your Healthcare Costs in Retirement

3/21/2016

 
Picture
We often think of retirement planning in the sense of setting a savings goal, deciding upon a target date for retirement, and then steadily working toward the finish line. But once you've reached your goal, retirement planning doesn't stop there. You must also analyze your future expenses, establish a budget, and find ways to manage or reduce the significant costs you will face in retirement.

Healthcare is perhaps the largest expense faced by retirees, with prices rising every year. Take these four steps now, and as you enter retirement, to help keep your expenses under control.
Protect your health. One way to prevent large health care bills is to keep yourself healthy! Eat a balanced diet, exercise regularly, quit smoking, and cut back on any other unhealthy habits like alcoholic beverages. A healthy lifestyle can prevent many common (and expensive) health problems.

Estimate your expenses. When you reach Medicare eligibility at age 65, you will begin to pay Medicare premiums. In the year or two leading up to retirement, research current premium amounts, keeping in mind that this expense can and probably will rise over time. While you're doing your research, estimate co-pays and deductibles. Do you need any equipment or medication to manage a health condition? Make sure you understand your coverage limits, and how much you will have to pay out of pocket.

Set a budget. Now, using that information, set a budget for your healthcare expenses. The average couple retiring today can expect to spend about $226,000 on healthcare over the rest of their lives. Keep in mind this is just an average, and that your own healthcare expenses will be influenced by the state of your health, your location, and sometimes luck. Remember to research the cost of long term nursing care in your area, keeping in mind that many retirees need these services at some point. Medicare won't pay for most long-term care costs.
​
Investigate solutions. Does your healthcare budget seem workable? If you're worried, there are options available to help you manage your expenses. Long term care insurance will kick in to cover nursing care if you ever need it, and Medicare supplemental insurance can help with the cost of prescriptions, equipment, and more. If you are eligible to open a health savings account now, you can take reap helpful tax advantages while stashing more money to help cover this retirement expense. Keep in mind that the cost of healthcare is rapidly rising, but you can take control of your future budget by investigating all of your options now.


Comments are closed.

    Kirt Carstens

    Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014

    Categories

    All
    2020
    CARES Act
    COVID
    Economic Update
    Election
    Employer Plans
    Estate Planning
    Fed Chairman
    Financial Planning
    Fourth Quarter
    FRA
    Full Retirement Age
    Funding
    GDP
    Health Care
    Health Savings Account
    HSA
    Income
    Inflation
    Insurance
    Managing Medical Expenses
    Medicare
    Planning
    Portfolio
    Retirement
    Retirement Home
    Retirement Planning
    Retirement Strategy
    Risk
    Risk Tolerance
    Say Yes
    Social Security
    Stimulus
    Stock Market
    Supplemental Retirement Income
    Tax Planning
    The Market
    Working In Retirement
    Working Part Time
    Yes

    RSS Feed

Kirt Carstens, CLU, ChFC
Investment Advisor Representative
P: (712) 332-5960
F: (712) 332-5391

605 Hwy 71 S
Arnolds Park, IA 51331
Get Directions

Home     About Us     Services     Resources     Blog     Contact

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.

Securities and Advisory Services offered through CreativeOne Securities, LLC Member FINRA/SIPC and an Investment Advisor.  Carstens Financial Group and CreativeOne Securities, LLC are not affiliated.
​
This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional.  The statements and opinions expressed are those of the author and are subject to change at any time.  All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only.  It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. 

Check the background of an investment professional.  |  Privacy Policy
  • Home
  • About Us
    • Pro-Am
  • Services
    • Retirement Income Strategies
    • Tax-Efficient Solutions
    • Investment Planning
    • Long-Term Care
    • Estate Preservation
    • Securities
  • Resources
  • Blog
  • Contact