As you save for retirement, it’s common to imagine all the great things your financial investment will support. Breathtaking trips. Unique hobbies. Even just the freedom to spend each day however you want.
But what about healthcare? Did you set aside money to cover those expenses? Was that ever part of your retirement dream sequence?
For many people it’s not. Bank of America’s 2020 Workplace Benefits Report found that only half of employees are saving for future health expenses. And the other half? For 23%, it’s not something they even think about, and 26% say they expect Medicaid, Medicare or Social Security to cover their healthcare.
Unfortunately, but not surprisingly, there is a lot of confusion around what those government programs really cover.
Social Security is not designated for medical expenses. While it does provide monthly income you can use however you like, it’s not high enough to cover a chronic condition or major health expense.
Medicaid is means-tested, so while it does cover some health costs, it’s only available to people with low incomes and few assets besides their home.
Medicare is a source for healthcare expenses in your retirement, however it does not offer comprehensive coverage and mainly helps with short-term needs. Plus, it’s broken into multiple parts and you need to know which coverage you have. One part offers hospital insurance, including short term skilled nursing care, hospice care, and some care at home. Another part offers medical insurance, covering some doctors’ services, outpatient care, medical supplies, and preventative services. Another part is for prescription drug coverage.
Also, Medicare has a lot of gaps, like vision and dental, hearing aids, assisted living, and long-term care. While these programs can be helpful, they don’t provide the safety net that many people are expecting. To truly have peace of mind for the future — knowing that you can’t predict what you might need one day, and that healthcare costs will continue to increase — you need to think about a plan like Life Care at Jefferson’s Ferry, where you can count on predictable monthly fees, knowing that you’re guaranteed the care you may need, if and when you need it, at less-than-market rates.
Financial planning for retirement often focuses on where you’ll live and what you want to do, but don’t forget about healthcare. It may be hard to imagine if you’ve had the good fortune of good health, but no one can predict what could happen years down the road. Plus, part of enjoying retirement today is peace of mind that you can have the care you need, if and when you need it. That’s why so many people choose Jefferson’s Ferry. Living in a Life Care community is, in itself, a plan for the unexpected.