Plan Ahead for Care and Emergencies
Three ways to begin planning for healthcare and unexpected costs in retirement.
Healthcare expenses can be one of the most significant financial concerns in retirement.
A healthy 65-year-old couple retiring in 2025 could spend around $588,000 on health care throughout retirement—$275,000 for men (assuming a lifespan of 88 years) and $313,000 for women (assuming a lifespan of 90 years).1
Which means, planning ahead is essential to managing the impact.
Plan Early for Medical Costs in Retirement
Staying healthy can help protect both your well-being and your wallet later. Regular exercise, a balanced diet and keeping up with preventive checkups can lower your chances of developing costly chronic conditions – improving both savings and lifestyle for years to come.
However, even the healthiest lifestyle can’t eliminate medical expenses. That is why it pays to plan ahead. If you are eligible, a Health Savings Account (HSA) can serve as a powerful tool. You can set aside pre-tax dollars, let your savings grow tax-free and use the funds for qualified medical expenses without paying tax on the withdrawal. Plus, any unused balance rolls over year after year.
Tailor Your Social Security Benefit
When you choose to start taking Social Security can have a big impact on how much you receive each month. If you delay your benefits beyond your full retirement age, your monthly income grows by about 8% each year you wait — up until age 70.
That extra income can make a real difference when it comes to covering healthcare costs and everyday expenses or giving you more flexibility in retirement. By aligning your Social Security strategy with your overall financial plan, you can create a stronger, more dependable income stream for the years ahead.
If delaying Social Security benefits would create an income gap, reach out to your financial professional to discuss how an annuity may help bridge that gap.
Find the Right Plan for Your Needs
Covering care costs could mean pulling from more than one income source.
Your retirement benefits can come from many sources: Medicare, Social Security, pensions, savings, retirement accounts and annuities. The challenge is knowing how to use each one so that it is most effective for your needs.
A financial professional can help you look at the big picture and design a plan that works for your specific needs.
For example, since Medicare will not cover every healthcare expense, you might use your savings for everyday spending while relying on an annuity to provide a steady stream of income dedicated to medical expenses.
The right mix of income sources can help protect your lifestyle and support your financial peace of mind. A fixed indexed annuity could help cover essential expenses today and in the years ahead.
Consider This
A fixed indexed annuity may offer enhanced payouts if you need long-term care, and if you never use those benefits, you keep the value of your annuity.
By reviewing your choices with a financial professional, you can create a plan tailored to your needs and built for long-term security.
Healthcare costs are one of the biggest factors in retirement planning, and the right annuity can help you prepare while protecting your overall financial well-being.
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