WiserAdvisor – Blog

Main Menu

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
logo
I Want to Take Charge.
HELP ME FIND AND COMPARE TOP VETTED FINANCIAL ADVISORS IN MY AREA.

FINRA/SEC Registered Advisors

  Your Information is Safe and Secure

WiserAdvisor – Blog

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
Retirement Planning
Home›Retirement Planning›How to make Health Insurance part of your Retirement Planning

How to make Health Insurance part of your Retirement Planning

By WiserAdvisor Insights
July 31, 2019
1249
0
Share:
Health Insurance in Retirement Planning

It is a universally accepted fact that health is wealth. Naturally, health should be of prime importance when planning for retirement too.  As one ages and nears retirement, the body is more prone to medical issues. If you are wondering why it is important to include health insurance in your retirement planning priority list, here is your answer! 

Emergencies don’t come knocking on your door. They just barge in. With the rising cost of healthcare, it is important to include health insurance in your retirement plans. According to Forbes, “The average 65-year-old couple can expect health care costs of more than $275,000 in their retirement years.” When such a cost comes unannounced at a time when you have practically stopped earning, you may find yourself in a rather tough spot. Having insurance can significantly help you in such a situation. 

How to include Health Insurance in Retirement Planning?

  1. Pick a health insurance provider
  2. Calculate out of pocket premiums
  3. Prepare for medical emergencies
  4. Sign up for HSAs
  5. Make the most of the existing schemes
  6. Prepare yourself mentally

1. Pick a Health Insurance provider 

Picking a health insurance provider can be a difficult task if one is not well researched. There are numerous providers in the market offering different benefits at different rates. Calculate how much you need for your retirement and pick the one that compliments your goals and budget. 

Sometimes, the workplace you are working at, might also offer employee health insurance packages. However, as per the Kaiser Family Foundation’s recent research, there has been a decline in the percentage of companies offering health insurance in retirement packages from 40% to 25%. So, it may not be a good idea to rely on your employer on this front.  

2. Calculate out of pocket premiums 

The tricky part about picking any health insurance for retirement is estimating the pros and cons of each. Plan A might be the most suitable for your situation, but it may not suit your budget. This is where early retirement planning plays a key role. 

While creating retirement planning budgets and setting goals, it is important to reserve a major chunk of it for healthcare. This way, you can work backwards while picking your plan and provider. You already know the best price for the ideal health insurance and now the task at hand is to save accordingly.

4 Types of plans for Health Insurance in Retirement

  1. Long-term Care Insurance Plans
  2. Medicare Part D Coverage 
  3. Medicare Part B Coverage 
  4. Medicare Advantage Premiums 

The best fit for you out of these four will depend on several things, including potential health issues, current wellbeing status, and the capital at hand. 

3. Prepare for Medical emergencies 

Some of us lead a healthy lifestyle where we don’t have any major health issues. This is why some people often end up picking a basic health insurance plan, banking on their current wellbeing and lifestyle. While this can be financially beneficial at the moment, in the long run, this is a risky move to make.  While picking health insurance for retirement, one has to take into account the unlikely event of an emergency and be prepared for the worst. This may even include adding life insurance to your retirement plan, to be prepared for anything that is to come. 

4. Sign up for HSAs

HSAs or Health Savings Accounts are available in many health insurance plans. One should opt for HSAs for its advantages of tax exemptions. You can pay for health care bills or insurance premiums using the amount in this account and save on tax dues. Investopedia reports that as of 2019 the regular HSA contribution limit is $3,500 for individual coverage and $7,000 for family coverage.

5. Make the most of the existing schemes

In 2014, the Obama government came out with the Affordable Care Act, which allows you to claim coverage for preexisting conditions if you are retiring before the age of 65. The best part of this act is its affordability, so much so that you can get insurance coverage by paying just $1000 a month. 

After the age of 65, you may still claim this coverage, but the more important decision to make at that point would be to decide if you want to stick to your medicare plan or move to a more advanced one. While both have their own pros and cons, you may visit the government website to dig deeper or consult professionals to weigh in their insights. 

6. Prepare yourself mentally 

This links up to the initial discussion on why it is important to have health insurance in retirement, in the first place. A recent study by HSA Bank revealed that people often miscalculate their post-retirement health expenses because of denial or misjudgment. Therefore, it becomes imperative to be mentally prepared and acknowledge that retirement can be a tricky phase. Your health may or may not be the same as today and you may sooner or later require some financial backing.  

To sum it up

The idea of health insurance in retirement is gaining momentum. The health care system has been a point of discussion across different governments and its leaders. They are all trying to come up with a system that places health care ahead of everything else. Bills have been proposed to penalize people without insurance. Although, no such bill has been approved yet, nonetheless, it points out how the future of health care and insurance is shaping up in the U.S.

Financially securing one’s future and wellbeing is best done in the hands of a professional. Wondering how to prepare for retirement? Reach out to financial advisors today!

Tagsfinancial planningGoal-Based Investingpersonal financeRetirementretirement planning
Previous Article

How to Rollover your 401(k) in 5 ...

Next Article

The Complete Guide on Financial Planning for ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0
WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • Retirement
    Retirement

    Is $1 Million Dollars Enough for Retirement?

    February 28, 2022
    By WiserAdvisor Insights
  • Retirement-Income
    Retirement Planning

    Using Leverage to Create Retirement Income

    February 27, 2020
    By WiserAdvisor Insights
  • Financial Planning To-Do List through Quarantine
    Financial Planning

    Financial Planning To-Do List through Quarantine

    May 8, 2020
    By WiserAdvisor Insights
  • Education-expenses
    Retirement Planning

    How to Pay for Education Expenses with an IRA?

    October 3, 2019
    By WiserAdvisor Insights
  • Estate-Planning
    Estate Planning

    Estate Planning for Persons with Large Retirement Accounts

    June 28, 2021
    By WiserAdvisor Insights
  • myths about retirement
    Retirement Planning

    Shedding Light on The Myths of Retirement

    August 12, 2019
    By WiserAdvisor Insights

Leave a reply Cancel reply

You might be interested

  • Portfolio
    Retirement Planning

    How to Diversify Your Portfolio the Right Way

  • Certified Financial Planner (CFP)
    Financial Planning

    The Importance of a Certified Financial Planner (CFP) for Your Financial Planning

  • Portfolio-diversification
    Investment Management

    All You Need to Know About Portfolio Diversification

Don't miss out! Get our Helpful Financial Tips Newsletter

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Why investing for goals is the right way of investing

    Why Investing for goals is the right way of Investing?

    By WiserAdvisor Insights
    July 16, 2019
  • Portfolio diversification

    5 Dangers of Over-Diversifying your Portfolio

    By WiserAdvisor Insights
    July 26, 2019
  • Financial Planning for couple

    The Complete Guide on Financial Planning for Couples

    By WiserAdvisor Insights
    August 1, 2019

Categories

  • Business Finance (2)
  • Education Planning (29)
  • Estate Planning (20)
  • Financial Advisor (1)
  • Financial Advisor Guide (30)
  • Financial Planning (121)
  • Investment Management (65)
  • Personal Finance (10)
  • Portfolio Management (1)
  • Retirement (16)
  • Retirement Healthcare (1)
  • Retirement Planning (79)
  • Retirement Plans (1)
  • Uncategorized (2)

The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • High Net Worth Wealth Management

    7 Wealth Strategies For High-Net-Worth Individuals In 2023

    By WiserAdvisor Insights
    January 27, 2023
  • Financial New Year's Resolutions

    6 Financial New Year’s Resolutions for 2023

    By WiserAdvisor Insights
    January 11, 2023
  • Future Investment Trends 2023

    Key Trends and Concerns for Investors in 2023

    By WiserAdvisor Insights
    January 9, 2023
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 700
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2022 WiserAdvisor.com. All Rights Reserved.