Useful tips to help retirees be able to pay for their medical and long-term care in retirement.
How to Pay for Retirement Care
It can be hard to figure out how you will be paying for retirement care.Some people get lucky and get a pension and good coverage for their medical and retirement needs that will last a lifetime.Others are not so lucky.Follow these tips to decide on how to best pay for your care in retirement.
Don't Make Assumptions
Do not assume that your employee benefits are going to be enough. Very few companies actually offer these types of benefits and, when they do, this can change. You may notice that there are health insurance benefits for people that are retiring under their program.However, just because your company is currently offering that it doesn't mean that that will be something that is going to stick later on.Many companies have a clause in their contracts that say that they can change their benefits at any time. These benefits can also change later on, for example you may end up paying greater premiums.
Wait for Medicare?
If you can, you should try to wait to get care until you qualify for Medicare when you are sixty-five years old.So, it may be a good idea to get a job that has benefits in the meantime until you reach the qualification age.If you experience a layoff, you should look into whether you might be covered under the plan that your spouse has.You may also be able to get coverage through COBRA. Be aware that if you retire prior to your eligibility for Medicare, you will be paying high costs for your health care.This could mean around seven thousand dollars in out-of-pocket expenses.
Be Ready for the Costs of Medicare
Just because you are on Medicare, you can't expect that you will have no costs for your medical expenses.There are many expenses for different Medicare plans and you will need to pay co-pays and deductibles, among other things.You might be paying out-of-pocket for dental and hearing, to name just a few.You will also need to consider medication and any type of care in a facility for medical help or otherwise. You will end up paying quite a bit of money after you take everything that you will need medically into consideration, so you need to be planning for this accordingly.
Work Later in Life?
You may want to think about waiting longer to retire.If you do this, you will have more money that you can save up for medical and long-term care expenses. Make sure that you allow your investments to have some time to grow, as well.Working for longer also has physical and mental health and well-being benefits, as well.It may help you to live longer and be healthier for a longer period of time.This means that you won't need retirement care for as long of a period of time. Just make sure that the job you choose is one that is low-stress because too much stress can have negative effects on your health.
Pay Attention to How Much You Will Pay for Retirement Care in the Long-Term
Most often, you will find that any type of care that is designed to be for long term won't be something that Medicare will cover.Nursing homes can cost over two hundred dollars each day.If you need to have care in your home, that's going to run you about twenty dollars each hour.So, you need to make sure that you have money saved up to be able to help to offset these costs should you ever need long-term retirement care.
You may want to think about investing in insurance for care in the long term.This is something that will help to insulate the blow of the high costs of retirement care in the long term.Be aware, though, that these types of insurances are costly, as well.Make sure that you do your research before getting any insurance policy.Find out what the premiums are and what will end up taking place if you don't pay.Find out about their cancellation policy, as well.Ask about the term of the coverage and how much money they will pay.These are all really important questions to ask and you need to ask them because you will want to get the best possible policy for you.
Go Your Own Way
Some people decide that they don't really want to take care of their needs medically when the medical costs are too high.Some people hit that doughnut hole in the Medicare coverage and don't buy their medications any more. You may choose to do this, but you need to be aware of what the potential consequences of doing this might be in the long term.
Finally, the best way to pay for your retirement and medical care, along with saving up money and investing wisely, is to keep you healthy and take care of yourself.As the old saying goes," An ounce of prevention is worth a pound of cure."So, keep yourself healthy and make wise financial decisions.
By Alisha Webb. Alisha is a British writer working out of Barcelona and a content developer for Forest Healthcare that provides retirement care for the elderly in the UK.