Will your retirement savings last long enough?
I don’t think so.
According to SCL report, about one-third or thirty percent of boomers have saved nothing as they approach retirement. While those boomers who managed to save has a median balance of $200,000.
OK, maybe you are thinking that amount is huge enough.
Then, think about this:
When we say retirement, we are talking about two decades or so here. Two decades or more in retirement!
And, $290, 000 will not take you that far.
Here are some reasons why:
1. Longevity. Don’t underestimate how long you might live, though it is really difficult to say if you will live very long. But if you did live very long, it means that your retirement money should also live long. Outliving your money is detrimental can be a detrimental scenario in this problem.
2. Healthcare. According to Fidelity Investments, an average 65-year-old couple in retirement can expect to pay $275,000 in out-of-pocket expenses for health care.
Healthcare is the most possible reason why you will fall short in retirement.
So, now you have a realization.
Because there are lots of things you need to take care of retirement. Let me share with you how you can shockproof your retirement healthcare costs. So, you can at least live the rest of the years in peace or less worry.
Ways to shockproof your retirement healthcare costs
Take preventive steps
Prevention is better than cure, right?
While early, take preventive health actions so you won’t get very sick in retirement. Make the most out of your time right now to have a healthy lifestyle. Also, take advantage of preventive health services such as vaccines.
Create a budget
Make a budget so you know where you are spending your money. If you have a budget, you will see how you can make room to save some more.
Think long term
Since longevity can be one of your problems, it is a good idea to think long term. You can arm yourself with long term care insurance, in case you will need some form of long term care in the long run.
Be proactive in your health
Be proactive in taking care of your health. Especially if you already have a pre-existing condition. Take proactive steps in managing your condition so it won’t blow up into the worst disease. When your condition gets worse, your healthcare costs will increase dramatically.
Know your coverage
By the time you turn 65, you’ll be eligible to have a Medicare. Take time to get to know your new coverage and understand your benefits. Know what is covered and what is not. Review your health needs, your preferences, and your pharmacy needs.
Did you feel that Medicare coverage is not enough?
You may want to consider getting a Medicare supplement plan.
It is an additional health insurance that will help you cover the gaps in Medicare. Deductibles, copayments, and coinsurance are some of the healthcare expenses that Medicare does not cover. Those are the out-of-pocket expenses that in time can add up and become a burden. Medigap will cover all or part of those expenses, providing you wiggle room in managing healthcare costs.