How do I afford health care in retirement?
- How do I afford health care in retirement?
- What is Medicare?
- Who pays for Medicare?
- What is Medicare Part A?
- What is Medicare Part B?
- What is Medicare Part C?
- What is Medicare Part D?
- What is Medigap insurance?
- Which Medigap policy should I buy?
- Where can I learn more about Medigap?
- What is Medicaid?
- What does Medicaid cover?
- Should I get long-term care insurance?
- How can I tell if a nursing home is a good one?
- Will my health coverage be affected if my spouse dies?
Save up a big fat pile of money before you retire. Sadly, we're not joking.
Sure, once you hit 65 you will be eligible for Medicare. That will take care of a lot of your medical expenses, but probably not all. You will be required to pay a premium for some of your Medicare coverage, and you will probably want to purchase a private Medigap policy to cover all the costs that Medicare doesn't. Fidelity Investments ran the numbers and estimated that a 65-year old couple retiring in 2008 will need $225,000 of their own savings to handle 20 years of out-of-pocket retirement health costs.
And be careful about relying on your employer's promise to provide health care benefits once you retire. Even those that pledge such care may find it hard to live up to their promise when you hit retirement. More and more big companies in a financial pinch are reducing or rescinding health insurance benefits once promised to their retirees.
