A survey by Sun Life Financial, found that 92% of workers said they don’t know how much their health care will cost in retirement or vastly underestimate the amount. Forty percent said they have “no idea” what their health care costs are likely to be in retirement. Only eight percent were in the correct ballpark estimating costs of $200,000 or more.
1. Work on developing a retirement spending plan. There are several companies with interactive calculators. Fidelity Investments offers various calculators at this website.
Vanguard also has retirement calculators here.
2. Buy disability insurance. The Sun Life survey shows about nine percent of workers have already withdrawn money from retirement savings, sold assets or borrowed money for a serious illness or medical procedure. And about half say they’ll never be able to replace the money.
3. Consider long-term care insurance. The Department of Health and Human Services says 70% of people over age 65 will need some type of long-term care. It may be home assistance or it could be a stay in an assisted living facility or nursing home. They can explain long-term care and offers guidance on costs. It’s usually less expensive the earlier you take out a policy. Do your research on premium costs, know what you’re buying, and deal with a reputable insurer. Some insurance even help pay for an assisted living community. You can start designing healthy assisted living communities to find the best community for you and your needs.
4. Get healthy. More than half of the workers surveyed by Sun Life said they are trying to improve their health by dieting, getting more exercise with a pilates ball amazon or quitting smoking because they’re worried about future health care costs. If you’re planning to lose weight, for instance, consider reading about the phentermine drug. If it’s new to you, visit site for phentermine here. at jason-roe.com. Only 12% characterized what they’ve done as major changes, though. About 45% of workers in their 30s have changed their lifestyle over concern for future health care costs. Come join me on a Sunday morning bike ride.
Provided by Joan Campbell, CPA.