Health & Retirement: Financial Planning for Your Future

As seniors age, it becomes more important to ensure they are retirement-ready. Whether that includes planning for future care or making sure they are financially able to take care of impending health needs, it’s never too soon or too late to start. “It’s crucial to formulate a retirement plan for a number of reasons,” says Jimmie Fay Griffin, Executive Director at YourLife™ of Tallahassee, a Memory Care Assisted Living community in Tallahassee, Florida. “The future is unpredictable as is health. Anything can happen at any time, from a rise in healthcare costs to a health scare, making it necessary to be prepared in the event a disaster strikes.”

Why should seniors consider their healthcare expenses in their retirement plan?

Unfortunately, many seniors aren’t prepared for budgeting healthcare expenses. According to AARP®, a study they recently performed showed that almost two-thirds of respondents never tried to calculate how much money they may need in healthcare costs – which can quickly diminish their retirement savings. While Medicare may help, it may not cover a large part of the rising costs, meaning seniors need to plan ahead and do their homework to prevent paying a large amount of out-of-pocket costs. Consider some of the facts that AARP provides:

  • While the average amount of money seniors will need for healthcare varies, the average 65-year-old couple needs $220,000 for 20 years of retirement. Is this number a bit shocking? For many seniors, it is. Unfortunately, depending on how long your retirement is, it could be even more.
  • Medicare may not cover you as well as you’d think. It’s estimated that Medicare might only cover about 51% of healthcare costs, according to AARP®.
  • 52% of adults ages 50 to 64 are confident they can afford the cost of healthcare during retirement. This is likely because of planning ahead from a young age. Those who are not confident simply may not know where to start or may have believed that healthcare costs were already factored in during retirement planning. Sadly, this isn’t often the case.
  • While effective planning is the best way to ensure the ability to afford healthcare costs, getting fit may help seniors to reduce their cost. This may be able to create a savings of $10,000 to $100,000.

How can seniors accurately plan for their future? There are a number of things seniors can do to help them save money for healthcare costs or at least manage how much they will need to pay out of pocket. Try some of the following:

  • Become more knowledgeable about Medicare. There are multiple ways to learn more about Medicare, from presentations held at local senior living communities to financial advisors. Set up an appointment to see how they can help you plan for the future.
  • Create a health savings account. Saving some extra money for medical expenses can be done tax-free through a health savings account. This option allows you to roll money over from year to year if it’s not used, while saving more money in the process.
  • Begin to live a healthier lifestyle. Manage any current health conditions you may have. If you need to lose a little weight, begin an exercise routine. If heart conditions or diabetes run in your family, eat a more nutritious diet and be sure to check your levels. Visit the doctor more often and, if needed, quit smoking.

If you are curious how much money you may need to save in healthcare costs, or to find effective ways to save on costs, try AARP’s Health Care Costs Calculator. This tool can help to educate seniors and give a more realistic picture on how important healthcare is when saving for retirement. For more information about rising healthcare costs, or to learn about how YourLife of Tallahassee can help give you peace of mind for the future, give us a call today at 850-250-5671.

Inspired ● Engaged ● Fulfilled

If someone you love is living with memory loss, you want the very best for them. You’ll find it at YourLife™ of Tallahassee. Because Memory Care is all that we do, we have the unique ability to focus all our energy, attention and resources into creating an environment that caters to each resident’s needs, preferences and abilities while providing unequaled peace of mind and support for families. We see each resident as an individual because we understand that each resident has their own story. Using this idea, we develop personally inspired care plans that value and support each person’s independence while creating beautiful days. No matter how much care they need, our team of attentive, caring YourLife Personal Care Specialists can provide assistance with all activities of daily living while providing reminders, guidance, support and cues. Even better, residents and their families experience true peace of mind knowing that expert care is on site 24 hours a day, seven days a week. Our personal touch doesn’t stop at our care. In fact, it’s only just the beginning. We create days that leave residents feeling Inspired. Engaged. Fulfilled through our signature programming, YourStory. With individual experiences centered around each resident, engaging outings, services and amenities, activities, dining and more, we create opportunities to learn and pursue new endeavors. At YourLife of Tallahassee, everything was designed for you, but it is defined by you, creating a lifestyle that makes every day a joy. Contact us to learn more. Call us at 850-250-5671 for more information or to schedule a personal visit today.