906 Penn Avenue
Wyomissing, PA 19610

Kelly Financial Group LLC

(610) 743-5203

 
Retirement Read Time: 2 min

Money that Buys Good Health is Never Ill Spent

According to the Kaiser Family Foundation, the average person covered by Medicare has out-of-pocket medical expenses in excess of $5,400 a year. Premium costs accounted for 42% of the total, while long-term facility costs, medical supplies, prescription drugs, and dental care claim most of the rest of the costs.1

With healthcare expenses in the spotlight, it’s incumbent upon us to make sure our retirement strategy anticipates these costs.

But that’s not enough.

Remember, healthcare coverage (including Medicare) typically does not cover extended medical care. And it’s a prospect we shouldn’t overlook.

The Administration for Community Living estimates that about 60% of people will need extended care at some point in their lives.2

These annual costs can range widely based on geographic location and the type of care required. An assisted living facility will cost over $80,000 per year in Alaska. In Oklahoma, in would cost around $46,000 a year.3 When workers were surveyed, only 15% said they were “very confident” they would have enough money to pay for extended care in retirement.4

Finally, you may want to consider a Medigap policy, which may help cover some of the healthcare costs not covered by Medicare.

Making sure that you are properly insured for your medical costs may help strengthen the foundation of your retirement.

1. Kaiser Family Foundation, November 4, 2019 (Based on 2016 data, which is the latest available.)
2. Administration for Community Living, January 4, 2021
3. Genworth Cost of Care Survey, 2021
4. Employee Benefit Research Institute, 2020

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

The 12 Steps to Living Confidently: How to Cut Your Expenses

The 12 Steps to Living Confidently: How to Cut Your Expenses

“Cut spending.” “Slash expenses.” “Avoid shopping.” The overwhelming advice about cutting expenses makes it sound downright unappealing. No wonder many of us haven’t learned to be good financial managers.

Vacation Without the Guilt Trip

Vacation Without the Guilt Trip

Travel doesn’t have to be a financial headache.

Why Regular Rebalancing Makes Sense

Why Regular Rebalancing Makes Sense

Without your knowing, your investment portfolio could be off-kilter.