How Health Care Expenses Will Affect Your Retirement


Filed under: Retirement


iStock_000007464603Large[1]As you prepare for retirement, many of your upcoming expenses will be fixed. You know how much is left on your mortgage, you have set a savings goal, and you want to pay off those credit cards. But one major expense will remain variable throughout your retirement years: Your health care expenses.

You have probably heard that the cost of health care is rising. But just how dire is the situation?

  • Those with health insurance saw a 7.2 percent rise in health care costs between 2011 and 2012, with the trend of rising costs continuing every year since.
  • 26 percent of Americans have experienced difficulty paying their medical bills in the past year.
  • 58 percent of Americans say that they have forgone or delayed important medical care in the past year, due to their inability to afford the out-of-pocket cost.

Medicare covers people aged 65 and older, but that demographic will comprise one-fifth of the nation’s population by the year 2050. Therefore, the public health program will continue to experience growing strain. Medicare already does not pay for the cost of long-term nursing care in many circumstances, and does not cover much of the cost of prescription drugs. Many retirees must look for other options to pay for these items.

As you plan for retirement, continue to consider the cost of health care. Remember that your out-of-pocket health care expenditures are likely to greatly exceed the amount that you spend today, and plan for extra room in your budget. Prices will likely rise each year, so try not to settle for a fixed income that appears barely adequate at the start of your retirement.

If you’re very concerned about long-term nursing care, end of life expenses, or setting up a reliable stream of income for life, call our office to schedule an appointment. We carry many insurance products designed specifically to address the needs of retirees, and we can help you create a plan that suits your needs.

15038 – 2015/11/16


If you would like more information or have specific questions, please contact us using the following form. We would be happy to assist you.

This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .