Northwestern Mutual: How to Prepare for Healthcare Costs in Retirement

How to Prepare for Healthcare Costs in Retirement

When approaching retirement, many people may have questions for their financial advisor. Having enough money in retirement is a primary concern for aging adults, as is what to do about the rising cost of healthcare. With the increasing price of healthcare coverage not showing any signs of slowing down, it’s a good idea for people to address concerns with their financial team and ensure they’ll have sufficient resources to pay for care later in life. Here are some helpful tips to consider when looking ahead and planning for healthcare costs in retirement.

Finalize retirement age

“One of the most basic things for future retirees to consider is their expected retirement age. By benchmarking a certain age or having a goal in mind when it comes to their retirement, they can speak with their financial advisor about the estimated yearly amount they can expect to need in retirement as well as how much of their income will conceivably go towards healthcare costs,” said Mike Robustelli, Chief Executive Officer, Partner and Private Wealth Advisor with Fortivus Wealth Group, Northwestern Mutual in King of Prussia, Pennsylvania.

Check in on retirement plans

“Another proactive step is to address retirement planning as early as possible” added Robustelli. “By enlisting the trusted advice of a financial advisor, making and updating retirement plans can help ensure future healthcare costs are part of a retiree’s overall plan.”

Establish Medicare coverage and supplementary insurance

When preparing for the cost of healthcare during retirement, it’s important for future retirees to understand Medicare and the options available to supplement it. While everyone must register for Medicare, this coverage may not fully handle all healthcare expenses. Retirees can explore options like a health savings account (HSA), prescription drug plans, and supplementary insurance to cover costs that basic Medicare doesn’t.

Remember dental care

In addition to Medicare and supplementary insurance, it’s important for future retirees also to consider how they’ll care for their dental care. While Medicare may cover some dental expenses depending on the plan, people planning for their healthcare in retirement can also look into standalone dental plans to cover cleanings, future dental work, minor and major care, and any other oral, denture, or periodontal care they may need down the line.

Cultivate and maintain healthy habits

From scheduling routine doctor and preventative care visits to eating healthily, exercising, and caring for mental, physical, and psychological health, keeping healthy habits can pay dividends in better health as people age. By cultivating such positive habits earlier in life, those planning for retirement can enter their next phases of life with routine self-care and established preventative measures to put them on a stronger and healthier stance as they enter retirement.

Look forward to the future

By considering these aspects and planning well in advance, retirees can focus on enjoying their later years with their healthcare addressed and their retirement funds working for them. Regularly checking on retirement funds, considering insurance and other supplementary policies, planning realistically, and updating healthcare coverage plans as circumstances evolve can help retirees enjoy their golden years and well-earned retirement in good health.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance
Company (NM) and its subsidiaries in Milwaukee, WI.

Source: Northwestern Mutual

Contact: Don Klein, 1-800-323-7033