Retirement can be an exciting time in life to look forward to. But let’s face it. There can be many financial unknowns when it comes to retirement.
intention social security Will you continue to pay full benefits? How long will your savings last? And how much will it cost to function once your career is over. inflation Rise?
But while these are all clearly valid concerns, one of the main concerns you may have about retirement is deteriorating health that requires long-term care. transamerica survey, 37% of workers expressed this particular fear. So if anything wakes you up in the middle of the night, you’re not alone.
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The good news is that there are steps you can take to cover the costs of long-term care. However, you should start taking it fully before you retire.
Don’t leave your future health needs to chance
One of the great myths surrounding long-term care is that Medicare pays for it. it’s not.
Medicare only covers medical-related costs. If you need physical therapy at home after surgery or an accident, Medicare usually pays for it. But if you need to move to a nursing home because of your age, Medicare will most likely avoid paying.
So instead of relying on Medicare, we need to take the issue of long-term care into our own hands. In that regard, you have a choice.
One is to enroll in long-term care insurance in your 50s. There is no need to do so sooner than that as you will be paying your premiums for a long period of time. And just to be clear, these premiums can be high. However, it may pale in comparison to the cost of nursing home care and several years of assisted living.
Another way to address care needs is to make ongoing donations. health savings account (HSA) If your health insurance plan covers one.
The great thing about HSA is that you can carry forward as much money as you like. You can make the most of your HSA for your entire career and invest that money into retirement. This can serve as a means of payment if you need to move to a nursing home or nursing home.
HSA money can not only be used to pay for long-term care insurance itself, but it can also be used to pay long-term care insurance premiums. And remember, even if you no longer need long-term care, you can generally expect your health care costs to rise when you retire. So putting money in HSA is a smart bet anyway.
get ready
Without a crystal ball, it’s hard to predict how your health will change and what you’ll need later in life. But if you don’t want to bankrupt yourself or put an undue financial burden on your loved ones if you need long-term care, get long-term care insurance and make sure you have enough money. You’ll need to make sure… on hand to cover those final costs.HSA is a great bet in that regard, but if your health insurance plan isn’t compatible with HSA, they can always pour more money into you. IRA or 401(k) plan instead.
