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When it comes to healthcare expenses in retirement, there are those you can somewhat-accurately factor into your budget (such as insurance premiums), and those that are unexpected (such as a medical emergencies or illness).READ THE ARTICLE
When it comes to healthcare expenses in retirement, there are those you can somewhat-accurately factor into your budget (such as insurance premiums), and those that are unexpected (such as a medical emergencies or illness). For medical care you can assume you will need in the future, however, it’s important to consider the potential costs ahead of time and how they will fit into your income plan. Six of the highest areas you could see expenses stem from include:
📌Insurance premiums: If you retire prior to being eligible for Medicare at age 65, you will need to secure health insurance elsewhere, and premiums for private coverage can be steep
📌Home health assistance: If you have a current health condition that will require you to need home health assistance in the future, factoring in that cost is critical, as it can land near $54,912 annually, depending on location
📌Assisted living: The expenses that come along with an assisted living facility typically come from your pocket, and the national median cost in 2020 was $51,600
📌Nursing home care: You might transition from assisted living to a nursing home facility, where in 2020, a semi-private room was set at $93,075 annually. Make note: This is where long-term care insurance can play an important role.
📌Dental and vision expenses: Basic Medicare does not cover the costs for ongoing dental visits or eye exams, but some Medicare Advantage plans do
📌Prescription drugs: A Medicare Part D plan does cover prescriptions, however, some medications could still have high out-of-pocket expenses
The good news: While you may face many potential healthcare risks throughout retirement, good planning and the right tools can cover virtually all of them.