The long and winding road
As Americans, we are living longer. Preparing for the inevitability of needing healthcare in the future is wise. As we age, even with insurance, out-of-pocket healthcare costs will likely become a concern. For some, medical debt is a leading cause of bankruptcy as costs continue to rise. Medical debt is also the leading cause of 401(k) withdrawals which could undermine your savings goals. We’ve designed this page to help you prepare for healthcare costs in retirement, keeping you healthy, wealthy and wise.
Here is to your health
Start by looking at your past - your family’s health. Reviewing the longevity and heredity of your close loved ones can give insight to what you might expect. One way to think about planning for healthcare costs is to think about how long you might live. None of us can predict our health, however, there are things you can do now to plan.
Understanding what may come
Your health is everything. Paying for healthcare in retirement, however, can have a big impact on your finances. When planning for the long-term, think about what it would mean to stay independent in your own home or, if you need assisted living what that kind of change would represent. When you understand your potential future health challenges, you can do something good for yourself and plan for what may come.
Be ready
Part of taking care of you, is planning for a future quality of life – for the rest of your life. Having the right resources in place can help. To estimate just how much you will need to cover medical costs, you can log in to your retirement account and use myOrangeMoney®, an interactive educational online experience, so you can be ready to be resilient.
It’s never too early or too late
When saving for your future, it is never too early, or late. There are things you can do to keep more of what you earn with tax-advantaged HSAs (health savings accounts). If you are over 55, you can take advantage of catch-up contributions allowing you to save even more in any given tax year. It all adds up, so the sooner you start the more you may have to cover expenses in retirement, including healthcare costs. Discover more about HSAs and other ways to help you save.
Give yourself a plan for the future
As you begin to understand the potential challenges with healthcare costs, you can begin planning for some inevitable medical expenses that may come. One way to plan is to think about supplemental insurance to counter future healthcare costs. Supplemental policies can include long-term care (LTC), critical illness riders or adding additional coverage. Explore the options that may be right for you and give yourself a plan for the future.