Tammy Broccas October 1, 2018
health care costs

Health care costs should be an important part of your retirement planning. It’s hard to estimate just how much your health care will cost you in your retirement years, and it’s easy to grossly underestimate. Nobody wants to be left without the coverage and care they need, so the more planning you can do in advance, the better equipped you’ll be for your golden years.

While Medicare offers a level of coverage through its many parts, this coverage isn’t always what you think.

You’ll still have to account for premiums, out-of-pocket costs, and unexpected fees. Too many retirees forget to include these costs in their retirement budget, and that can be catastrophic if you aren’t careful. Keep reading to learn how to best plan for health care costs in your retirement.

The Cost of Healthcare

The main reason so many aging people struggle to understand the full cost of health care is because they’re so used to employer healthcare. When your company covers a percentage of the expense, that can account for up to 75% of your coverage. You’ll be left paying just 25% or a little bit more in your paycheck.

What this all translates to is needing more than your average take-home pay to cover your healthcare costs. You’ll also be responsible for premiums and out-of-pocket costs that can’t always be anticipated. It’s always better to be safe than sorry when it comes to your health!

Understand the Premiums

So what exactly will you be paying for when you start Medicare? There are four types of premiums you’ll see during your retirement: Medicare Part B, Medigap or Medicare Part C, Medicare Part D, and long-term care.

Medicare Part B depends on your income. That means if you made under $85,000, you’d be expected to pay the average of $134 each month. If you made over this amount, you can expect to pay more. People with higher incomes (in general above $85,000) pay higher Part B premiums.

If you think you’ll need additional coverage or you want more control over your health care costs, consider reading further about…
 

Discover more on this website

How will my implants look when I’m 50? Just like everyone who had breast augmentation, their implants will age with time. That being said, the degree to which this occurs varies from patient to patient. Patients will have different starting points when they choose...
Beware of feeling unnaturally good How to teach your children about alcohol, and drugs I’m not a parent yet, but I’m still young enough to be one in the future. Life is good for me right now. I’m doing well professionally and have a happy personal life. So ...
What leads to sharps-incurred injuries and how to ... Sharps like needles, blades and syringes are both very important and very dangerous in terms of medical uses and also some non-medical uses at home (which are more unlikely causes). Even the littlest of these sharps can chang...
What is long duration cardio? There is no dearth of information and well-meaning advice available on the internet and other media regarding the best ways of exercising to maintain good health. There is a constant addition to the understanding of how the b...

Leave a comment.

Your email address will not be published. Required fields are marked*

Pin It on Pinterest

Share This