Healthcare costs can be one of the most significant expenses in retirement. It’s essential to plan ahead to help ensure you have the coverage and resources you need.

Here are three key steps to planning for healthcare in retirement:

1. Understand Your Options: Research Medicare and supplemental insurance plans. Medicare covers many healthcare expenses, but it doesn’t cover everything. Supplemental plans can help fill the gaps.
2. Estimate Your Costs: Consider your current health and potential future needs. As part of our Empower Process, we can help estimate your healthcare expenses including things like prescription medications, routine check-ups, and potential emergencies, giving you a clearer picture of what to expect.
3. Consider Long-Term Care Insurance: Long-term care insurance can help cover the costs of extended care services, such as nursing homes or in-home care. It’s an important consideration, especially if you have a family history of chronic illnesses.

Now, what if you plan to retire before reaching Medicare age? Unless your employer offers retiree coverage, you’ll need to consider other health insurance options so that you don’t go without coverage until you are Medicare eligible. The cost of coverage should be fully explored among various resources and can vary widely. Your options may include:

1. Joining your spouse’s plan if they are still working. This can be a cost-effective solution if their plan offers comprehensive coverage.
2. Continuing your employer’s insurance plan under COBRA for up to 18 months. While this can be more expensive, it ensures continuity of coverage.
3. Purchase health insurance directly through the marketplace or privately through an insurance company. Compare different plans to find one that fits your needs and budget.

Additionally, it’s important to consider the impact of healthcare inflation on your retirement savings. The long-term average inflation rate for healthcare costs in the U.S. is just over 5%.

We’re here to help you navigate these decisions as part of our Empower process. If you have questions about what role healthcare will play in your retirement, reach out to us today to find out how we can help you secure your legacy across generations.

Any opinions are those of Aristata Financial and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.

Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Aristata Financial is not a registered broker/dealer and is independent of Raymond James Financial Services.