If you’re approaching retirement, you likely have some big milestones ahead. One of the most important may be enrollment in Medicare. You’ve been paying into Medicare your entire career. Retirement is your opportunity to finally benefit from those contributions.
Medicare is a valuable service that extends medical insurance to retirees. It is generally available starting at your 65th birthday. Originally, Medicare simply provided coverage for hospitalizations. Over time, however, the program has become more robust and complex.
Today’s retirees face a wide range of choices and benefit options. Some come with added protection but also additional premiums. You may find it helpful to review your options and analyze your needs. By choosing the right protection package, you can minimize the impact health care has on your retirement assets.
Risk management is at the core of any sound financial plan. But it takes on heightened importance in retirement. Once you leave the working world, you don’t have the benefit of a regular paycheck. It could be difficult to bounce back from a market downturn or a costly emergency.
Health care costs can be an especially dangerous risk for retirees. Fidelity estimates that the average married couple will spend $275,000 on out-of-pocket health care expenses.1 That figure doesn’t even include long-term care, which can cost thousands of dollars per month and may be needed for several years.