Gottier Investments

860-683-1245

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

Financial Fixes: How to Get Out of the Minimum Payment Vorte

Financial Fixes: How to Get Out of the Minimum Payment Vorte

Did you know that U.S. households carry nearly $7000, in revolving credit card debt from month to month?

12 Financial Hacks for Millennials: Budgeting, Investing and

12 Financial Hacks for Millennials: Budgeting, Investing and

Millennials bear substantial potential, but they are also facing a world of great financial uncertainty and opportunity. This e-book presents 12 Financial Hacks for Millennials to guide them through....

What Is the Dividend Yield?

What Is the Dividend Yield?

This calculator helps determine your pre-tax and after-tax dividend yield on a particular stock.

 

Have A Question About This Topic?







Thank you! Oops!

Layers of Protection

Take these five steps to protect your financial well-being before making any other changes.

The (Other) Talk: Preparing Your Parents for Retirement

For much of our lives, our parents are the ones who have to bring up uncomfortable topics. (Just think back — and squirm — to their birds and bees talk. Awkward, right?) But once we become adults, sometimes it’s our turn to start sensitive conversations.

Uncommon Knowledge for Your Life

See how The Living Balance Sheet® can help you tell financial fact from fiction, so you can achieve financial balance.

View all articles

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

Interested in a Fuel Efficient Car?

Estimate how many months it may take to recover the out-of-pocket costs when buying a more efficient vehicle.

Estimate Your RMD

Help determine the required minimum distribution from an IRA or other qualified retirement plan.

View all calculators

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Your Cash Flow Statement

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

An Inside Look at Retirement Living

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

View all presentations

18 Years’ Worth of Days

The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

The Rule of 72

Do you know how long it may take for your investments to double in value? The Rule of 72 is a quick way to figure it out.

Surprise! You’ve Got Money!

Here’s a quick guide to checking to see if you have unclaimed money.

View all videos