Retirement is an exciting time for so many reasons. Time for travel, the ability to spend quality time with one’s family and spouse, time to take up or rekindle hobbies, and so many other wonderful things. But of course, all of these things cost money. And the one thing nobody likes to think about needing—healthcare—also costs money too, apparently quite a bit.
According to U.S. News Money article by Emily Brandon, the suggested amount to have saved to put towards healthcare is roughly between $220,000 after tax (a number recommended by Fidelity) and $283,000 (according to the Employee Benefit Research Institute.)
Whatever way you slice it, most retirees will be using Medicare, the nation-wide social insurance program managed by the U.S. federal government. We wanted to key you in on some things about Medicare that you might not be anticipating, but would be wise to plan for, especially if you are used to an insurance with a low deductible, little or no premium (if your health insurance is through an employer,) and a small amount of out-of-pocket costs for prescriptions.
You can certainly expect Medicare to come with a premium, and it’s also wise to plan ahead for co-pays, deductibles, and things that are not covered by Medicare. It’s also a good idea to figure out roughly how much will be deducted from your Social Security check to pay out the premium. Brandon’s article (above) is a great place to start to get some ideas about what to plan for, and some nuances to Medicare that perhaps you hadn’t thought of already.