Plan for Retirement

Beyond Medicare – How to Fund Health Care Costs in Retirement

As retirement draws closer, many of us cling to a false sense of security that Medicare will cover all of our health care costs. Once we hit 65, it’s all taken care of and we don’t have anything to worry about, right?

Wrong.

While it’s true that beginning at age 65 most Americans become Medicare eligible, the reality is there are many health care expenses that Medicare does not cover, such as routine dental and vision care, as well as long-term care. Medicare also puts caps on what it will pay for many prescriptions drugs, if anything at all. In fact, the average retiree spends about $4,300 per year on out-of-pocket health care expenses. [SOURCE: Center for Retirement Research at Boston College]. With many people now living decades in retirement, those costs can really add up over time.

The good news? There are options beyond Medicare to help you fund your health care expenses in retirement.