We discussed the critical social security benefits question last time, now another critical question -
How will you pay for health care?
Health care costs will comprise a significant portion of retirement expenditures for many. Companies offering retiree medical benefits are becoming increasingly rare. Even state and municipal entities will likely have to rethink this benefit in coming years.
Retiree medical costs must be factored into your retirement planning or else you may be doomed to run out of money. One method of funding retirement health care costs is to use a Health Savings Account if you have access to one via a high deductible insurance plan in the workplace or privately. These accounts allow tax-deferred contributions and tax-free withdrawals for qualified medical expenses. Ideally, you would fund the account while working and use out of pocket dollars to fund current medical expenses, allowing the balance to be used for Medicare supplements and other expenses.
Asking these 5 questions can help you ensure that you are in the best financial shape possible as you approach retirement. Addressing the questions outlined above and many others are critical to your retirement planning.
How will you pay for health care?
Health care costs will comprise a significant portion of retirement expenditures for many. Companies offering retiree medical benefits are becoming increasingly rare. Even state and municipal entities will likely have to rethink this benefit in coming years.
Retiree medical costs must be factored into your retirement planning or else you may be doomed to run out of money. One method of funding retirement health care costs is to use a Health Savings Account if you have access to one via a high deductible insurance plan in the workplace or privately. These accounts allow tax-deferred contributions and tax-free withdrawals for qualified medical expenses. Ideally, you would fund the account while working and use out of pocket dollars to fund current medical expenses, allowing the balance to be used for Medicare supplements and other expenses.
Asking these 5 questions can help you ensure that you are in the best financial shape possible as you approach retirement. Addressing the questions outlined above and many others are critical to your retirement planning.
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