The average senior citizen spends about $4,000 on healthcare costs per year. Depending on your situation, this number can be much higher. If you’re self-employed or retired, you might be paying for insurance. If you’re still working, your employer covers part of the cost. But as we age and our bodies break down, we can expect to see that number increase significantly — especially if we don’t plan.
Although it’s impossible to predict exactly what will happen in the future, some general trends can help us prepare for retirement medical expenses. Here are some things to consider:
- Take advantage of tax savings when possible
- Consider supplemental insurance options
- Start Saving for Retirement While You are Young and working.
If you’re worried about how you’ll pay for health care in retirement, here’s what you need to know:
Health care premiums are rising at an alarming rate. According to research, the cost of premiums has increased 245 percent over the past 15 years. And that increase has been even more dramatic for those with employer-sponsored coverage, where premiums have grown by 6 percent annually over the past two decades.
If you’re in good health, there are steps you can take now to reduce your costs as you live a retired life.
Buy insurance for as long as possible before retirement. And even online pharmacies like PricePro Canadian Pharmacy delivers prescriptions to the USA so you are better off.If you’re eligible for insurance when you retire, consider buying a comprehensive policy rather than a barebones policy. Do not leave any gap in your policy so that you are helpless if an injury or disease affects you. Typically, these policies are not as expensive, but if you neglect them, then the cost of your post-retirement life could be severe.
You may also consider putting money toward these costs in a health savings account. These accounts allow you to pay for your medical expenses with pre-tax dollars, which can help reduce your tax bill.
Find out if your local bank offers some savings accounts specifically for health-related issues. If they do, then join their plan and make regular deposits. Ask them about their withdrawal requirements since they won’t always allow you to take out a lot of funds otherwise.
If you have an employer-sponsored plan, check with human resources to see if any changes could affect premiums or out-of-pocket expenses. If so, take steps now to help minimize the impact of those changes on your budget and financial security going forward.
Think about moving into a senior living community if you are preparing for retirement. Many seniors move into senior living communities when they retire or transition from full-time work because it provides a safe place for them to live, surrounded by people who share similar interests and socialize regularly. Some senior communities also offer onsite medical services such as doctor’s visits and emergency care for residents who don’t want to use their primary care doctor but need regular monitoring of their health status.
