You are probably underestimating how much you will spend on health care during retirement. Health care costs are one of the biggest expenses during retirement (this rarely includes visits to the eye doctor or dentist). Start preparing today!
In an article from CBS News, author Steve Vernon writes, “Medical expenses represent one item in retirees’ budgets that can increase significantly when transitioning from your career job into retirement. According to the U.S. Bureau of Labor Statistics, employers on average subsidize 80 percent of the cost of health care premiums for their active employees and more than two-thirds of the costs for family coverage”.
In the article Vernon discusses:
Making smart choices with Medicare and supplemental insurance
Purchasing a “Medigap” plan
Health Savings Account
Planning for long-term care
Vernon continues, “You have a lot to consider when it comes to your retirement planning. But if you start now, you’ll be prepared when the time comes to leave the workforce entirely”. Are you properly planning for your health costs during retirement?
To read more, see the full article from Steve Vernon in CBS News.