Health Care Planning in Retirement Overview Part 1
Published May 8, 2023, 8:40 p.m. by Bethany
retirement is a time of rest and relaxation, but it can also be a time of worry. You may have questions about retirement planning, such as how much money you'll need and when you should start saving. This overview will help you answer some of your questions.
How much money should you save for retirement?
There is no one right answer to this question. The amount of money you need to save for retirement depends on a variety of factors, including your age, the amount of money you have saved, and the type of retirement plan you choose. Generally, you should aim to save at least enough money to cover your expenses during retirement, but you don't need to save the entire amount.
How do you figure out how much money you need to save for retirement?
There is no one definitive answer to this question. You can use a retirement calculator to estimate how much money you'll need to save for retirement based on your age, income level, and other factors.
How can you start saving for retirement?
There is no one definitive answer to this question. You can start saving for retirement by contributing money to a 401(k) or other retirement plan, or by investing money in stocks, bonds, or other securities.
What are some other things you should consider when planning for retirement?
You should also consider the following factors:
-Your health care needs in retirement
-Your plans for socializing and spending time with friends and family in retirement
-Your plans for traveling in retirement
-Your plans for maintaining your current lifestyle in retirement
What are some tips for preparing for retirement?
Here are some tips for preparing for retirement:
-Start planning for retirement as soon as you start planning for your own financial future.
-Save as much money as you can.
-Consider using a retirement plan such as a 401(k) or IRA.
-Invest your money wisely.
-Create a financial plan to help you manage your money during and after retirement.
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- [Tim] According to a nationwide survey of US adults
age 50 and up, four in five people can't accurately estimate
how much they expect to pay for healthcare in retirement.
It is vital to the retirement planning process
that financial professionals and their clients
get a better idea for the cost they can prepare for.
I'm Tim O'Mara with the Nationwide Retirement Institute
which was founded to provide financial professionals
with the tools and insights they need
to help their clients navigate the most important topics
in retirement.
And this is health care, planning for costs in retirement.
- Fewer and fewer companies are offering
their retired employees company health care benefits
in retirement.
We already know that 10,000 baby boomers
are turning 65 every day
and that is gonna continue until 2030.
This means that many retirees will no longer
have company paid health insurance,
which in turn means they'll need assistance
with Medicare and may have other gaps to consider.
- [Tim] In a recent Harris Poll commissioned by Nationwide,
older adults were asked how much that they think
annual health care costs are in retirement.
44% weren't sure or couldn't estimate but in total,
84% of people underestimated or didn't know.
Now it's possible many people don't think about those costs
because they know they will have Medicare
and may mistakenly think it will cover all their needs.
Medicare recently celebrated its 50th year
as America's nationally subsidized health insurance,
after several presidential administrations
tried and failed to install
a national senior healthcare solution,
Medicare was founded in 1965 to help meet
the healthcare needs of citizens over the age of 65
who were not covered by healthcare insurance of any kind.
For financial professionals and their clients,
understanding how Medicare works, its options and costs
is a key component of a comprehensive plan
for life in retirement
and it's an issue where clients are largely uninformed.
- Medicare is awash with jargon
and presents clients with an avalanche
of time sensitive information
that requires decisive answers.
The choices someone makes can have a huge impact
on their retirement income and quality of life.
- Surveys generally show that most people haven't discussed
Medicare with a financial professional
and they probably should.
Medicare is a critical component of health coverage
in retirement and as more and more insurance companies
exit the market for senior health insurance,
Medicare, alongside social security,
is a nearly universal retirement issue.
Join me for part two in this series
as we break down the options and implications of Medicare
and learn how to translate questions about Medicare
into a broader conversation about managing income
and expenses in retirement.
(gentle upbeat music)
