When planning for your retirement along with other normal expenses, etc., don’t forget to include these 4 large expenses in your budget:
- Health Care
According to a Nerdwallet / Associated Press article and Fidelity, the average 65 year old retired couple will need about $300,000 in after tax savings to handle health care costs in retirement.1
Note: Of course your specific costs will depend on where you live, how long you live, and your overall health. - Long Term Care
Note that 70% of people over the age of 65 will require Long Term Care during their lifetime!
Long Term Care expenses can wipe out your entire life’s savings relatively quickly! Depending on where you live, how much you have in your savings, and how long you need to stay in a Long Term Care facility (or even just plain home health care). It is very expensive for even a short stay at a Long Term Care facility!
Long Term Care Insurance is highly recommended while you are still healthy and relatively young, to keep premiums down.
Examples of some AARP 2023 Annual “Estimated" examples for the local Sarasota, FL area are:
Assisted Living Approx. $3,159 / Month and Up! ($4,500 / Month on average)
Semi Private Nursing Home Approx. $7,756 / Month and Up!
Private Nursing Home Approx. $8,668 / Month and Up! - Dental Care
The average senior on Medicare using dental services paid nearly $900 a year out of pocket, according to Kaiser Family Foundation. 1 in 5 Medicare beneficiaries spend more than $1,000.1 - Prescription Drugs
Since 2015, at least 1 million enrollees per year in Medicare Part D (Prescription Drug Plan) have had drug costs high enough to exceed the catastrophic coverage threshold. which was $7,050 in 2022.1
The good news is that new laws have been recently put in place. Starting in 2025, the maximum out of pocket for Part D drugs will be capped at $2,000 annually.
1. Source: Nerdwallet/Associated Press article by Kate Ashford.
Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.
By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.
By calling this number, I understand I will be directed to a licensed insurance sales agent.