As people head into retirement, many believe Medicare will cover their health care expenses. It is a health care benefit people pay into during their working years and is part of their retirement plan. Research shows, however, that senior health care can be significant. Learning what those costs are and how to protect yourself is important.
On average, a retiree can expect to pay $122,000 out-of-pocket for health care expenses that Medicare or insurance doesn’t cover. Some will have even higher expenses. Out of all seniors, 5% will face out-of-pocket medical bills of more than $300,000; 1% more than $600,000. For an older adult living on a fixed income, that can take a big bite of their budget.
It’s important to be aware of the health care-related expenses your Medicare Part A and B benefits won’t cover. Some, such as whether Medicare pays for assisted living, are surprising to older adults.
A few of the most common health care expenses Medicare doesn’t cover include:
If your retirement plans include travel outside of the country, it’s important to know Medicare will not pay for any potential health care expenses. You’ll need to purchase a separate health care policy before your trip.
What else can you do to protect your retirement savings from catastrophic senior health care expenses?
We have a few suggestions for you to consider.
Finally, you may qualify for other avenues for financing assisted living or nursing home care. An experienced senior care advisor can help you explore alternate options for financing assisted living care or a nursing home.
From special benefits for qualified veterans to life settlement funds, there may be options to help when the need for more care arises. Call us at 888-514-6461 to speak with a senior care advisor for free.