Identify and Anticipate Healthcare Costs
Gaining access to the Medicare system in retirement can help lower your overall healthcare costs, but you might still find some surprising expenses. Get acquainted with those expenses now, so you can budget them into your retirement plan and avoid surprises later.
"Seniors need to budget for the obvious: Medicare Part B premiums and any Medicare supplement plans or Medicare Advantage plans," said John Barnes, a certified financial planner at My Family Life Insurance. "Depending on their health, they should also budget for prescription drugs. Depending on the plan they select and their specific situation, seniors could end up paying $300 or more per month for their healthcare and Medicare plan premiums."
You could also face some less obvious expenses, such as dental care and hospital stays, said Barnes.
"Unless seniors have an inclusive Medicare supplement plan, which will pay for nearly all healthcare costs, they will have out-of-pocket exposure," he said. "I recommend a hospital indemnity plan for these situations, as these plans will pay for unexpected hospital stays and hospital care. These plans are rather inexpensive and will help pay for most, if not all, out-of-pocket costs."
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