Retirement Insurance Costs and Issues

You may be surprised, but perhaps the most critical issue you will face prior to and during retirement will not be where to live, where to travel and what to do with all that free time.

The two most critical issues you will likely face during retirement will be:

1. Maintaining or enhancing your health, your physical and mental fitness and your overall wellbeing.

2. Dealing with how you will pay for all your healthcare and medical costs as you age.

SOMETHING TO THINK ABOUT

Obviously, the better you do at number 1, then the lower the costs should be for number 2.

Medical and healthcare cost estimates for a couple retiring at 65 and living a normal lifespan range anywhere from $295,000-$390,000. And that does not include the cost of Long-Term Care should you need it. Oh, and by the way, according the U.S. Department of Health and Human Services there’s a 70% chance you will have some long-term care service and support need after you are 65. And a big FYI— MEDICARE DOES NOT COVER LONG-TERM CARE!

The Most Significant Risk!

According to a study by the US Department of Health and Human Services “The prospect of becoming disabled and needing long-term services and supports (LTSS) is perhaps the most significant risk facing older Americans.”

So, what is your plan for dealing with your future medical and healthcare costs? What options do you have?

You may think that Medicare will cover you for everything… well it won’t. As already mentioned, Medicare does not cover long-term care services.

Medicare and any other supplemental insurance or Medicare Advantage plan you get, does not typically cover alternative treatment.

What if you come down with a debilitating disease and you want alternative treatment? How will you pay for it? Can you afford it? Or, will you be stuck with accepting traditional treatment that many times is ineffective

What Are Your Odds For Developing A Debilitating Disease?

Obesity: 42%

• Obesity is probably the greatest cause for health-related issues. Obesity can lead to:

- Heart Disease

- Strokes

- Diabetes

- Pulmonary/Lung Disease

- Cancer

- End Stage Renal Disease/Kidney Failure

- And more

• Fortunately, obesity can be easily avoided and corrected through proper diet, exercise and lifestyle.

Heart & Vascular:

• Heart disease is the leading cause of death for those 65+.

• Roughly 70% of those 65-74 have Hypertension (high blood pressure). After 75, that percentage increases to almost 84%

• Costs for heart and vascular medications can run from inexpensive to exorbitant.

Cancer:

• Cancer is the second leading cause of death for those 65+

• According to American Cancer Society, if you are a man, then you have just over a 40% chance of developing some form of cancer. If you are a woman, it’s a little bit less, just under 39%.

Pulmonary/Lung Disease:

• Chronic respiratory disease is the third leading cause of the death for those 65+.

• 14%+ of those 65 and over suffer from Chronic Obstructive Pulmonary Disorder (COPD). COPD is usually caused by smoking or working in an environment where you are inhaling chemicals.

• Costs for inhaler medications and breathing devices can run from moderate to expensive.

Diabetes:

• One in four people over 65 get or have diabetes.

• Type II Diabetes, like obesity, is avoidable and reversible with the proper diet, exercise and lifestyle.

• Diabetic medication can run from inexpensive to exorbitant.

Alzheimer’s/Dementia and Parkinson’s:

• Cognitive decline and memory issues is one of the health issues that many people fear and dread the most.

• If you live to 85 and beyond, you have a 50% chance of developing Alzheimer’s/Dementia.

• If you develop Alzheimer’s disease, then odds are, you will need someone to take care of you. Whether that is someone coming to live you, you going to live with them, or you moving into a nursing facility there will not just be great financial costs involved, but also emotional and mental costs for those that care for you or love you the most. Do you have a plan for this?

• Parkinson’s disease only occurs in about 1% of people over the age of 60. But, for those 1% and their spouses or family, managing the disease can be a real challenge.

Physical Issues:

• Arthritis odds for someone 65+ is almost 50%

• Arthritis can be mild to severe and the costs for arthritis medications can be from inexpensive to exorbitant.

As you can see, there’s a pretty good chance you or your spouse will develop one or more of these medical and health conditions.

Some of these health conditions can be avoided or at least lessened with proper diet, exercise and lifestyle.

Your out-of-pocket medical and healthcare costs with any of these issues can be exorbitant. The right Medicare coverage will go along way. But, if you need or want alternative treatment or assisted living, then your costs will certainly run into the tens of thousands, if not hundreds of thousands.

Long-Term Care

Assisted Living/Nursing Home

Long-Term Care is the big one. You will want to view the Long-Term Care section for detailed information about costs and options. But, here’s the nitty-gritty, for now.

As I’ve already told you, the odds are pretty good you will have some need for Long-Term Care services…a 70% chance!

Check out these costs (based on national annual median costs):

• Adult Day Care: $19,240

• Home Health Aid: $54,912

• Assisted Living Facility: $51,600

• Nursing Home Semi-Private Room: $93,075

• Nursing Home Private Room: $105,850

Other than having the proper Medicare coverage, a good Long-Term Care plan is the next most important insurance to consider and obtain if needed.

Health & Aging Links:

https://www.cdc.gov/nchs/fastats/older-american-health.htm

https://www.cdc.gov/nchs/data/ahcd/agingtrends/06olderpersons.pdf

https://www.prb.org/eight-demographic-trends-transforming-americas-older-population/ ]