Here`s What Retirees Should Know About Healthcare and How They Can Prepare

Every year financial services conduct an estimate on how much a newly retired couple is expected to pay on health care throughout their retirement years. The expected tab has increased for people retiring in 2019.

According to the estimates, a couple that retires in 2019 is expected to pay up to $285,000 on health care expenses alone. On an individual basis, a retired woman is expected to spend $150,000 and $135,000 for the average retired man. Also, you should note that if your health condition gets worse or you’re live longer than the average retiree your average out of pocket health care expenses could be more.

Use All Your Tax-advantaged Account to the Maximum

If you are still years from retirement, then the above estimate is most likely not going to apply to you. There are a lot of things which can change the cost of health care between now and the time that you retire. There is nothing which shows that the health care costs are reducing anytime; hence you should stay prepared at all times by maximizing out your contributions to a health care savings account. If you do not have an HSA you can contribute a lot of money to your other tax-advantaged accounts like the 401(k).

What to Do If You Are Ready to Retire

If you are ready to retire there are a couple of things which you can do. First, you should get to know what Medicare A and B covers and what they don’t cover. You should also consider getting a Medigap insurance plan.

Josh Goodhue

Josh Goodhue is a journalist and political commentator and analyst. He writes a political column for the Journalist Observer, he also contributes political articles to various periodicals and is a frequent guest on news shows about the state of politics in the country. He has had years of experience in the field of policy making, and has worked for (and with) several organizations focused on creating a political awareness among the country’s citizens. He has a degree in Public Policy from Harvard Kennedy School Of Government, and an MFA in Creative Writing from the California Institute Of Integral Studies.

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