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Managing Health Care Expenses in Retirement

For most of your career, you might not have spent much time worrying about the cost of health care. Your employer might have provided a comprehensive plan, or perhaps you simply didn’t experience many health scares in your younger years. But as you plan for retirement, health care will become a more central concern. In particular, you will need to find some way to manage your out-of-pocket expenses, because contrary to popular belief, Medicare does not always cover everything you will need!\r
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Plan ahead. The first step to managing your health care expenses in retirement is to know what you’re facing. Medicare charges premiums for both Part B and Part D coverage. These plans cover doctor visits, testing, and prescription drugs. However, if you need dental, vision, or hearing services, you might incur additional out-of-pocket expenses. These expenses may be covered by a supplemental insurance policy, or you might choose to pay for them on your own, but either way you should estimate your expenses well before you ever retire.\r
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Plan for a secure income. According to most estimates, a couple retiring today will spend about $266,000 on health care over the course of their retirement years. And of course, keep in mind that that number is an average. Your own costs could vary considerably according to your life span, where you choose to live, and your health status.\r
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Take the right steps now. Aside from planning for a secure income, there are steps you can take right now to lower your out-of-pocket health care spending later. For example, long-term care insurance will cover the cost of nursing care. Stashing money in a health savings account before retirement, if you are eligible to contribute to one, can help you save for future health care needs while reaping certain tax advantages. And of course, prevention is always the best medicine. Take care of your health today, by reducing alcohol consumption, quitting smoking, exercising more, and eating healthy foods. When you prevent health problems in the future, you also prevent large health care bills.\r
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Call our office for more information on preparing for retirement. We offer various insurance products ideally suited for the needs of retirees, so that you can protect your future income from the rising cost of health care.

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