As you make your retirement savings plan, it’s important to think beyond traditional investments. One key addition that could provide an extra layer of protection during your golden years is health care—related expenses can quickly deplete a nest egg if not properly accounted for. Healthcare costs are rising each year, making consideration and planning especially critical now more than ever. In this blog post, Anthony Pellegrino discusses why health care should be part of your retirement savings plan and offer some tips to maximize its effectiveness.
Anthony Pellegrino On Why Health Care Should Be Part Of Your Retirement Savings Plan, Too
When it comes to retirement planning, most people think of their financial savings first, says Anthony Pellegrino. However, if you don’t factor health care costs into your retirement plan, you could end up facing a huge surprise when the time comes. That is why it is important to include considerations for healthcare as part of your overall retirement saving plan.
First and foremost, healthcare expenses can be incredibly costly. During retirement years, many seniors have higher medical bills due to age-related conditions that require more frequent doctor visits and tests, prescription medications, and other treatments. According to a 2017 study conducted by HealthView Services Inc., an actuarial firm based in Danvers, Massachusetts – the average 65-year-old couple retiring today can expect to spend over $387,000 in their lifetime on medical costs. This figure does not include dental or vision care expenses.
It’s also important to note that even with Medicare coverage, seniors will still have out-of-pocket expenses for deductibles, co-insurance, and co-pays. There are also some services, such as prescription drugs and long-term care, that aren’t covered by Medicare, so you would need to plan ahead to cover these additional costs if needed.
As such, it is important to ensure that you have a retirement plan and savings that can cover your healthcare costs throughout your retirement years. This might mean having separate funds for medical expenses or buying additional insurance coverage such as long-term care insurance.
To make the most of your savings, you should consider investing in tax-advantaged accounts like Health Savings Accounts (HSAs), which allow you to store money towards future healthcare expenses on an income-tax-free basis. You could also look into annuities where a portion of the money can be dedicated specifically to fund medical expenses while ensuring that there are sufficient funds available when needed.
It’s also smart, as per Anthony Pellegrino, to review Medicare plans annually and compare rates so you can find the best deals for your medical needs. Additionally, utilize preventive care and discount health programs to help manage costs.
Anthony Pellegrino’s Concluding Thoughts
Ultimately, it is important to factor healthcare into your retirement savings plan, too, as medical expenses are one of the largest outlays during retirement, and you don’t want to be caught off guard when the time comes. According to Anthony Pellegrino, with careful planning and research, you can ensure that you have enough funds set aside for any potential healthcare costs that may arise during your retirement years.