Wilson Financial Services Inc.

(859) 824-9422

Retirement Read Time: 2 min

Money that Buys Good Health is Never Ill Spent

According to the Kaiser Family Foundation, the average person covered by Medicare has out-of-pocket medical expenses in excess of $5,400 a year. Premium costs accounted for 42% of the total, while long-term facility costs, medical supplies, prescription drugs, and dental care claim most of the rest of the costs.1

With healthcare expenses in the spotlight, it’s incumbent upon us to make sure our retirement strategy anticipates these costs.

But that’s not enough.

Remember, healthcare coverage (including Medicare) typically does not cover extended medical care. And it’s a prospect we shouldn’t overlook.

The Administration for Community Living estimates that about 60% of people will need extended care at some point in their lives.2

These annual costs can range widely based on geographic location and the type of care required. An assisted living facility will cost over $80,000 per year in Alaska. In Oklahoma, in would cost around $46,000 a year.3 When workers were surveyed, only 15% said they were “very confident” they would have enough money to pay for extended care in retirement.4

Finally, you may want to consider a Medigap policy, which may help cover some of the healthcare costs not covered by Medicare.

Making sure that you are properly insured for your medical costs may help strengthen the foundation of your retirement.

1. Kaiser Family Foundation, November 4, 2019 (Based on 2016 data, which is the latest available.)
2. Administration for Community Living, January 4, 2021
3. Genworth Cost of Care Survey, 2021
4. Employee Benefit Research Institute, 2020

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

It May Be Time for a Financial Checkup

It May Be Time for a Financial Checkup

It’s never a bad time to speak with your financial professional about changes in your situation.

Managing Your Lifestyle

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

Tax Efficiency in Retirement

Tax Efficiency in Retirement

What role would taxes play in your investment decisions?

 

Have A Question About This Topic?







Thank you! Oops!

It’s Time to Have a Talk with Your Parents

One of the strangest developments in the ever-evolving child-parent relationship is reaching the point when an adult child starts dispensing advice to his or her parents. It’s a profound, but natural turning point in the relationship.

Organizing Your Finances

Spark joy and become more confident by giving your finances the home organization treatment.

Tax-Advantaged Health Care Planning for Retirement

Heading into retirement with confidence is easier if your planning includes steps to minimize taxes, especially as it relates to health care planning.

View all articles

Home Mortgage Deduction

Use this calculator to assess the potential benefits of a home mortgage deduction.

Should I Buy or Lease an Auto?

This calculator compares the financial impact of leasing versus buying an automobile.

Should I Pay Off Debt or Invest?

This calculator will help determine whether you should invest funds or pay down debt.

View all calculators

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

View all presentations

Dreaming Up an Active Retirement

When you retire, how will you treat your next chapter?

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

Video: The Independence of Financial and Emotional

Greater financial and emotional confidence brings greater independence. Isn’t that what it’s all about?

View all videos