As people transition into retirement, one of the most difficult adjustments to make is the one from an employer provided insurance plan to Medicare. Many individuals in the workforce utilize all sorts of health services provided by their insurance, but few of these services remain covered by Medicare or supplemental insurance once these individuals retire.
This shift results in retirees paying for many of these expenses on their own. If your retirement plan understates the potential impact of these additional costs, there may not be enough money to financially support you for the length of your retirement. To avoid such disastrous outcomes, the retirement planning experts at CKS Summit Group have put together a few important factors to consider when strategizing for your retirement savings.
Expense Breakdown
CNN published a report stating that a 65-year-old couple retiring in 2017 will need an estimated $275,000 to cover health care costs in retirement. This amount experienced an increase of 6% over the same calculations from 2016, and more than a 70% increase over the calculations released in 2002.
These increased costs, when averaged over a retirement lifespan of 20 years, equal a cost of $13,750 per month in out-of-pocket health expenses. Does your current retirement plan compensate for this exorbitant amount?
Health Care Spending Surprises
Let’s take a look at some of the most common reasons for such large health care costs in retirement:
- Dental
- Vision
- Hearing Aids
- Long-Term Care
All of these factors contribute greatly to exponentially increasing a retiree’s health care costs. These expenses are also not completely straightforward, as they rely on several variables that are extremely difficult to predict.
The fact of the matter is that the cost to retire is increasing, with no sign of slowing down. The key is to start planning for retirement, and all of its complex costs, early on.
Schedule Your Personal Strategy Session with a CKS Professional!
At CKS Summit Group, we believe in a multifaceted approach to retirement planning. Our process combines all of the best possible benefits for your personal portfolio, while also maintaining an ideal amount of protection against market volatility.
Contact the financial advisors at CKS today to begin bettering your own retirement savings plan by giving us a call at 586-286-5820 or by clicking here. Thank you, and we look forward to working with you soon!
