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Health & Happiness

Smart ways to cut down your healthcare costs after retirement

Health care will be a major financial burden for retirees. However, not many senior citizens in America make adequate plans for it.

A healthy married couple planning to retire in 2019 at age 65 may now budget $275,000 for their retirement’s medical costs, per annual research by Fidelity Investments.

The study conducted by Fidelity assumes that the pair is qualified for Medicare and accounts for prescription drug expenditures in addition to premiums, copays, and other cost-sharing obligations.

In a recent Wells Fargo poll, two-thirds of retirees stated that one of their biggest concerns about retirement was taking care of health issues. Contrary to popular belief, Medicare does not pay for their expenses. You may click here to know more on health care for seniors. Check out the ways of cutting down your post-retirement healthcare costs.

Start a Health Savings Account (HSA)

Invest tax-free money in an HSA prior to enrolling in Medicare to get a jump start on medical expenses.

Not only are contributions tax deductible, but earnings and withdrawals are also tax-free as long as they are used for qualified medical expenditures.

You can no longer make contributions to the HSA after Medicare coverage starts, but you can use the funds to cover copays and other out-of-pocket expenses for any uninsured medical costs.

Invest in traditional Roth IRAs

Contributions to a variety of retirement accounts, including IRAs and Roth IRAs, can help over time to provide access to additional funds to help with retirement health care costs. The additional benefit of those accounts is that, if you’re above 55, you can make catch-up payments. (These limitations could alter over time; for further information, speak with your tax advisor or the IRS.)

Withdrawals from regular IRAs and employer-sponsored retirement accounts are taxed, nevertheless. There is a penalty if you withdraw the money before turning fifty-nine years old.

Save in an emergency fund

An emergency fund that is large enough and kept in a liquid bank account might help pay for unforeseen, urgent medical expenses in retirement, such as replacing broken spectacles.

Opt for long-term care insurance

Look into purchasing a long-term care insurance policy if you want to ensure that you have enough money to pay for assisted living, nursing facility care, or in-home care.

These plans assist in paying for medical expenses for a minimum of two to five years. Despite the double-digit increases in insurance premiums, most financial consultants advise holding onto this coverage for the time being. Check out

Take note of the smaller expenses

Dividing health care costs into manageable chunks is a crucial first step. Divide the total cost of your medical bills into the necessary monthly amounts. Make a monthly inventory of the medications that you, your spouse, and any family members require.

Then imagine how much it would cost to have a routine checkup performed. A senior should ideally go to the doctor once a month for a regular examination.

For roof ice dam prevention, you can check out the link. In case of any other queries on saving money, get help from a financial planner.

Infographic created by Family Love Care, Get Paid to Take Care of Disabled Family Member