FDIC-Insured – Backed by the full faith and credit of the U.S. GovernmentManaging Healthcare Costs in Retirement
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How to deal with the rising costs of health care during retirement.
According to a recent report, the average retiree may need about $165,000 just for healthcare costs in retirement. That’s a lot of money. For those in or near retirement age, here are some tips to keep those costs in check.
Routine Visits
One of the best things you can do to mitigate healthcare costs in retirement is to get regular checkups. Doing so will allow you to maintain your health and catch any health issues early.
Consider an HSA
If you have a high-deductible health plan, you might consider a Health Savings Account. These accounts are great because you can save pre-tax dollars for healthcare spending down the line. Also, sometimes employers will contribute to them. HSAs are also good for tax savings. You don’t get taxed on contributions, the money grows tax-free, and — as long as you use the money to pay for qualified medical expenses — you can make withdrawals tax-free.
Get to Know Medicare
One of the ways you can save on medical costs during retirement is through Medicare. However, the program can be difficult to navigate. Your best bet is to get acquainted with it before you hit age 65 so that when it’s time to enroll, you know what to do.
Do One Thing: Research any medication you’re taking and switch to generic whenever possible to save on costs.
Author: Chris O'Shea