Consider Health Insurance
Even if you don’t know the exact price of your medical bills during retirement, you probably have a good indication that they’ll be high. In 2019, it was estimated that a couple around the age of 65 will have to pay $285,000 out of pocket throughout retirement. That’s including Medicare premiums, deductibles, copayments, dental care, vision care and prescription drug expenses.
One of the many benefits of working longer is getting health insurance from your job. If you have an employer-sponsored plan then you only have to enroll in Part A of medicare, meaning hospital insurance. In addition, this is free for most people, so you could end up saving a ton of money.
Of course, you’ll want to have a discussion with the human resources team at work to check how your plan will work with Medicare. Don’t expect it to stay the same.
Also important! Don’t forget to enroll in Medicare. If you wait over 8 months to do so after losing your group health coverage or if you stop working, you’ll incur a penalty.
Understand Your Long-Term Financial Needs
You shouldn’t focus on working during retirement on a whim. What you’ll need, first and foremost, is a plan. This goes for everyone, whether they’re delaying retirement or not. Having a plan will be critical to your financial well being.
Look at your financial needs now versus what you expect them to be in the future. for example, you’ll probably want to travel early on during this period of your life. On the contrary, you might need to focus more money towards medical expenses the older you get.
What you decided to do career wise during retirement will largely depend on your plan and, vice versa, your job during retirement may affect your plan. There are plenty of free online tools that can help you. By searching for a retirement calculator online you could start working on it now.
Also, you could get in touch with an advisor as they often have insights you may not have thought of until now!
Best of luck on your retirement journey! Down below, let us know what you have in mind!