Medical expenses have grown faster then both inflation and inflation-adjusted Social Security payments. When you retire, your health care expenses will most likely to increase.
Medicare, which starts at age 65 (with some exceptions for severe disease or disability), currently pays only about 60 percent of retirees' medical costs, (according to a 2009 study by the Employee Benefit Research Institute). Purchasing supplemental insurance to help cover out of pocket medical expenses is a prudent course of action.
Long-term care is a significant consideration. On average 70% of people over age 65 will require Long-term care. These costs are not covered by Medicare. To manage the anticipated expense, you can purchase long-term care insurance.
Recommendations for a Successful Retirement
Retirement planning involves depositing money into a retirement account, and purposefully saving money for the future. There are many different types of retirement plans available, including an Individual Retirement Account (IRA) and a 401(k) plan. In most cases, employees are provided with a retirement plan by their employer, and contributions to the plan are deducted from the employee's paycheck. Some employers will match a certain percentage of an employee's contributions, adding more money to their account. Most plans have different rules and guidelines, including details such as when the money can be withdrawn.
Retirement security is one of the most critical issues in your life. Contact us today and let us show you how to maximize your retirement. We can help.