Did you know that 93% of people over age 50 are not confident that they’ve saved enough money for their healthcare needs during retirement? According to the Society of Actuaries, nearly all Americans in mid-life are essentially "planning blind." So how much will they need? A 2010 study found that an average couple at the age of 65 today will need at least $250,000 in savings for healthcare costs that Medicare won’t cover. Health insurance can help keep medical costs from eating away at your retirement nest egg. But proper planning and smart behavior are also key.
With retirement on your horizon, how can you be ahead of the curve? Here are a few tips can help protect your retirement funds.
How to practice
preventive care- Doctors agree that an annual physical is one of your best assets for monitoring your health.
- If you’re covered on one of GuideStone’s health plans, plan your family’s preventive care by using the Preventive Care Schedule.
- Aerobic exercise is important to maintain muscle mass — and your strength. It’s never too late to make healthy lifestyle choices.
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Practice preventive care
Regular preventive care and a healthier lifestyle are some of the most effective ways to control costs. Three-quarters of American healthcare expenditures are linked to preventable, chronic or lifestyle-related conditions, according to The New England Journal of Medicine. Healthcare reform requires all medical plans to cover eligible, in-network preventive care at 100%, so there’s no reason not to practice prevention.
Prepare for Medicare
Medicare is the primary source of health coverage for post-65 retirees. But Medicare will only cover about 60% of healthcare services. If you enroll in Medicare Part A and Part B in 2011, your estimated annual out-of-pocket healthcare expenses will amount to $7,600 per year for a couple and $3,800 per year for a single individual, according to the Centers for Medicare and Medicaid Services. Purchasing a plan that coordinates with Medicare may help offset expenses. Learn more about your Medicare options.
Switch to new generic drugs
Each year, some prescription drug patents expire. This means that they are now eligible to be manufactured as "generics." Twenty of the most-prescribed prescription drugs are slated to "go generic" in 2011-2012 alone. Is a brand-name drug that you’re taking
on the list? By switching to a generic version, you could save on drug costs (generics typically cost 20% to 80% less) and copays. Participants in a GuideStone health plan can save even more by signing up for Medco’s mail order service. Consult with your doctor if switching to a generic is right for you.
Continue to build your retirement confidence. There's more you can do to prepare for your healthcare needs during retirement, such as maximizing your HSA or considering long-term care insurance. Learn how much you need to save and ways to accomplish your goals.