Pass on the Risk or Self-Insure?
As we plan for retirement, it is important to think about our own mortality. Saving for that dream vacation and building a family nest egg was easy but planning for health and long-term care costs can be more challenging.
According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple at age 65 may need as much as $300,000 for health care expenses in retirement.
The question becomes… should you self-insure or pass on the risk to an insurance company?
What about Medicare?Most people see it as a one-stop health insurance solution for retirement, but while it covers hospital stays, doctor appointments, medical tests and more, it only pays for about 80% of outpatient expenses, according to Boomere Benefits.
How about long-term care?According to the AARP, 70% of seniors will require long-term care and delaying getting it only makes it more expensive. For example, the average 55-year-old couple will pay about $2,500 per year in annual premiums for long-term care insurance, but by the age of 70, that same policy could cost as much as $14,000 per year, according to the AARP.
The truth is, regardless of your wealth, long-term care insurance is worth considering.
So, what should you do?Together, we can take a look at your health, age, location, and family history to determine what you should budget for (self-insure) or shift the responsibility to (long-term care insurance) as part of your retirement planning strategy.
You have worked hard. You deserve a legacy. Your retirement savings should not be siphoned by health care costs. Call or email today to learn more or to have this topic added to our next meeting agenda.