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Does planning for healthcare costs in retirement concern you?

| September 12, 2018
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Are you putting money in your 401K, paying down your mortgage, saving for the kids’ education in a 529?  Are you doing everything just right, but you still don’t feel secure?  What’s bothering you in your retirement plan?  Maybe that nagging feeling is healthcare?  If so, you’re not alone.

Healthcare is the number one concern for retirees.

69% of wealthy retirees in the USA list rising healthcare costs as their biggest financial concern for retirement, according to a UBS survey in 2017.  $220,000 is the average health care cost for a couple in retirement, and that does not cover long-term care.

How about buying Long Term Care Insurance in your late 50s or 60s?

Do you have Long Term Care Insurance?  I can help you find options and provide quotes, but what if it isn't an option?  It would be great if we all purchased policies in our 40s or early 50s when premiums are still relatively low, but in practice many clients are in their late 60s before they begin seriously considering the role of health care in their retirement plan.  By then, Long Term Care Insurance can be very expensive or not an option due to a preexisting health condition.

What can be done when Long Term Care Insurance is not an option?

Start envisioning a happy future for your long term care.  Think about the type of care you want:  age-in-place, move to a continuing care community, receive care from a family member.  How do you want to live the final years of your life? 

Now let’s make a plan!

Self-insurance can be an option if you are prepared to save for your future self.  In retirement income planning I sometimes talk about ‘buckets’ of money.  Creating an account for long term health care needs with investments that suit that goal is helpful. 

Retirement is a smile...

Planning trips and spending more time on hobbies and family is usually in the retirement plan.  Sometimes the first few years in retirement expenses can go up, go down mid-retirement, and then go up in later years.  Plan for the fun years, and plan for the special years where you provide yourself with the care you want.  Quality of life and living your plan is important for your peace of mind and dignity.

Let’s talk about your vision for Long Term Care.

Sometimes having the conversation and thinking through the goals provides the peace of mind you need.  Matching savings to that goal is important.  Let’s plan on it!

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