Don't let your nest egg crack

Everyday Stewardship |

Consider how to handle health costs in retirement

If you’re nearing retirement, you might be wondering if your rainy day fund should still include enough to handle 3 to 6 months of expenses.

Because the events that threaten your nest egg are often health-related, the way we prepare for them varies, depending on whether you are 25 or 65. Here are three ways to prepare for health care costs in retirement:

  1. After you retire, continue to carry health insurance. Consider capping the health care costs you need to cover in any given year by pairing your Medicare plan with an option that supplements your Medicare coverage.
  2. Hearing aids, regular vision checks and dental care aren’t covered by Medicare. Include these costs in your savings account or income plan.
  3. Develop a long-term care plan, including some form of long-term care insurance if you’re eligible. The plan addresses things like: Who will care for you if you can’t live independently? Where would you like to be cared for? What will it cost for help if you can’t feed or dress yourself, for example?

Long-term care can be the most expensive health need you’ll have in your retirement years! In 2017, a private nursing home room in Pennsylvania cost an average of $10,000 per month.

Involve your family in conversation about how you’d like to be cared for in a short-term health emergency, as well as in advanced age.

When they know your plans and resources, your loved ones can focus on what matters – caring for you and one another, instead of sweating about whether your nest egg will last.

Author

Mackenzie Snader
Financial Advisor

Talk to us about your options

A financial professional from Everence can help you prepare for retirement.

We can talk with you about how you can bolster Social Security benefits and Medicare with other options that can cover more of your potential expenses.

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Disclosure

Advisory services offered through Everence Trust Company and Investment Advisors, a division of ProEquities, Inc., Registered Investment Advisors. Securities offered through ProEquities, Inc., member FINRA and SIPC. Investments are not NCUA insured, may involve loss of principal, and have no credit union guarantee. Everence entities are independent from ProEquities Inc.