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Financial Planning

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 $5,500 a year. Premium costs accounted for 28% of the total, while long-term facility costs, medical supplies, prescription drugs, and dental care claim the rest.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 Department of Health & Human Services estimates that about 70% of people will need extended care at some point in their lives.²

These annual costs can range widely based on geographic location, from over $63,000 in Oklahoma to nearly $300,000 in Alaska.³ When workers were surveyed, only 16% said they were “very confident” they would have enough money to pay for long-term 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. MedicareResources.org, March 20, 2018 (Based on 2013 data, which is the latest available.)
  2. Department of Health & Human Services, 2017
  3. Genworth Cost of Care Survey, 2017
  4. 2018 Retirement Confidence Survey, Employee Benefit Research Institute

Securities offered through FSC Securities Corporation, member FINRA/SIPC and investment advisory services offered through The Retirement Group, LLC, a registered investment advisor not affiliated with FSC Securities Corporation. Although FSC is a signatory to the Broker Protocol, TRG is not. The removal of PII from FSC under the Broker Protocol is a violation of the Privacy Policy. Representatives are securities registered and are able to service clients in the following states: ALABAMA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, FLORIDA, GEORGIA, ILLINOIS, INDIANA, KANSAS, MASSACHUSETTS, MICHIGAN, MISSISSIPPI, MISSOURI, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW YORK, NORTH CAROLINA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, SOUTH CAROLINA, TEXAS, TENNESSEE, WASHINGTON, WISCONSIN.

 

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