According to a report done by the National Bureau of Economic Research, people will incur $122,000 in medical costs between the time they are 70 and when they die, on average. The report found some outliers, too. Five percent of people may be hit with $300,000 in costs, and one percent will find themselves with over $600,000 in expenses.
Healthcare costs can’t exactly be avoided, but the feelings of insecurity and anxiety that come along with paying those bills can be. To avoid the stressful emotions, consider the following advice.
Stating the obvious here: Postponing retirement will give you more money to spend once you do finally retire. Being told to postpone your retirement is probably not what you wanted to hear. However, I’m not suggesting you stay in the job you have for the next 10 years. Maybe you’re like my dad, Dave, who wanted to keep working but was ready to bring his skills to a new company at the age of 56. Or, maybe you’re similar to my friend Anne Bell, who was ready to hang up her corporate hat for experiences that are more fulfilling.
Regardless, don’t feel like you’re stuck in the same cubicle till you finally pack up your briefcase for good. You can continue to work and bring home a paycheck even if you make a job change.
Postponing retirement isn’t the only way to combat healthcare costs, but it should be something to consider. In the end, do what is best for your own unique situation and wellbeing.
Consider Medicare and Other Options
If you’re turning 65 and retiring, look into enrolling in the Medicare program. If you’re over 65 and still working, you can still participate in Medicare through a Special Enrollment process once you do retire.
The world of Medicare is vast, so doing some exploring with the program is very important. In short, here are some important things to know about this federal government aid.
Medicare has different plans to cover different services. For example, Part A is hospital insurance, Part B is medical insurance, and Part D is prescription drug coverage. Choose your coverage and apply online. For more information about the program, click here.
Prepare, Prepare, Prepare
Saving and preparing for the future is an important topic to discuss – no matter your age. From stocks to saving accounts to retirement savings plans, handle your money wisely.
While you’re preparing for your own future, make sure you speak with the younger generations in your life. Help them prepare for financial independence and success so they can also combat rising healthcare costs when the time comes.
Healthcare is just one of those things that cannot be avoided. The costs are inevitable, but the situation you find yourself in to handle those costs is determined by you.
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Whether you are an avid TWE reader or first time downloader, a member of the iGeneration or on the brink of retirement, my hope is that through this eBook you can discover what matters most to you in life and and time to appreciate it all.