It’s a common misconception that Medicare will cover all health costs during retirement. Frequently, we encounter clients with comprehensive retirement strategies that have considered nearly every aspect of their retirement except healthcare. They tend to assume that their current good health will continue into their later years. However, this isn’t always the reality.
Certain aspects of your health may decline as you age. It’s a natural part of life! But to ignore that might cost you big bucks down the road if you don’t plan carefully for how to pay for the services you may need. Consider these aspects when planning your retirement budget:
- Vision Health: It’s true that certain costs related to ophthalmology, such as cataract operations, might be included in some Medicare packages, but not all services are! Routine eye check-ups, glasses, and contact lenses are NOT among the benefits provided by Medicare.[1]
- Ear Health: Unfortunately, Medicare does not provide coverage for hearing aids.[1] Medical issues related to your ear may be covered. However, when it comes to hearing aids, you would probably need to pay for the expenses yourself if you require them.[1]
- Dental Work: Original Medicare does not include dental coverage.[1] This is an important factor to consider if you foresee requiring high-cost dental procedures such as dentures or root canals.[1] You can explore private dental insurance alternatives that may assist in offsetting these expenses.[1]
- Long-Term Care: Medicare, unfortunately, does not shoulder the expenses associated with long-term care.[1] This is a significant detail about Medicare that should be factored in when formulating your retirement plan. The fees associated with nursing homes can be hefty. The mean annual cost of a nursing home in the U.S. is approximately $90,000, and potentially more.[1] Failing to prepare for long-term care puts you at risk of having to front the full cost out-of-pocket. The result: your savings could deplete faster than you thought.[1] However, there are ways to navigate this predicament – there are options such as annuities and long-term care insurance designed to shield individuals from the financial burden of needing long-term care.
If you’ve realized your healthcare and Medicare plan might have holes, we highly encourage you to consult with our financial professionals for an assessment of your unique situation. We can assist you in constructing a financial strategy that covers the important aspects of your life while also providing tailored guidance that caters to your unique circumstances.
