Managing Healthcare Costs in Retirement: A Comprehensive Guide
We all wish for those extra years, but what’s the point if we’re not taking care of ourselves? Without a solid healthcare plan, living longer might turn into a burden. As you age, heathcare costs can eat up a big chunk of your spending, and that’s not the retirement dream anyone has in mind.
One study showed that between 2009 and 2019, out-of-pocket healthcare costs for adults over age 65 rose by 41% to well over $6,000 a year. Today, older Americans are spending 13% of their annual expenditures on healthcare costs. For younger Americans that number is just 8%.
Of course, these numbers shouldn’t shock you given that surgeries, unexpected falls, memory loss, hearing or vision loss, and other routine medical expenses increase with age. However, that doesn’t mean you’re ready for them.
As you think about how to prioritize your retirement savings, you’ll want to understand your health insurance options, plan for your potential future medical costs, find ways to protect your health (and by extension your wallet), and consider your long-term care options.
Understanding Medicare
Medicare is the cheapest and best option for Americans over the age of 65. It is the government’s health insurance program which comes with four parts…