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The Common Health Issue That Could Cost You Your Retirement

Liz Smith | FEB 11, 2019

Heart disease accounts for one in every four deaths (approximately 610,000) in the U.S. each year. In addition to being the leading killer for Americans over 65, heart disease and the subsequent treatment can be very costly. 

If you don’t factor healthcare costs into your long-term retirement savings goals, heart disease and other health issues can get in the way of your future plans. 

Understanding Healthcare Coverage in Retirement

Medicare is by far the most popular healthcare choice in retirement, but isn’t a simple solution. There are several parts, which can be difficult to understand without expert advice

  • Part A covers hospital, facility and other inpatient costs. It can also help pay the cost of hospice and home healthcare. 

  • Part B covers any healthcare you receive outside a hospital, including doctor’s visits and outpatient procedures. This includes select preventive care. 

Parts A and B are run by the federal government and known collectively as Original Medicare, Traditional Medicare or Fee-for-Service (FFS) Medicare. But additional coverage is also available.

  • Part C covers hospital and medical costs. Similar to Original Medicare, these plans usually cover more out-of-pocket costs. They’re called Medicare Advantage plans. 

  • Part D covers prescription drugs, both brand-name and generic. It can be purchased as a standalone plan or in addition to Original Medicare.  

Part C and D plans are only available through private, Medicare-approved health insurance providers.  

The Best Way to Protect Your Retirement Savings

Although it has significant implications on overall financial health, your personal health isn’t always factored into long-term financial planning. A financial advisor can help you understand how Medicare works and which parts are best for you. 

Perhaps most importantly, they can explain the tax and cash flow implications of your healthcare choices as well as provide a broader context for the retirement savings you need.   

Follow These Steps to Find the Right Financial Advisor for You

When you face critical health issues, your insurance plan can be as important as your doctor. More and more financial advisors are becoming qualified to help you choose the right one. 

Selecting from the range of qualified financial advisors in your area can feel daunting, though. This new tool makes it easy. Get matched with up to three local advisors that have passed a rigorous screening process by following the below steps: 

1. Simply enter your ZIP code below.

2. After you enter your ZIP code and answer questions about your financial goals, you can compare up to three top advisors local to you and decide which to work with.

3. Enjoy a better financial future!

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SmartAsset - copyright 2018

SmartAsset - copyright 2018

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