Make Sure Health Care Costs are Covered
Did you know that the average couple will need at least $295,000 to cover medical costs during retirement, according to Fidelity? And this number doesn’t even include long-term care. You may want to rely on Medicare, but you still have to think about deductibles, premiums, copays, and other out-of-pocket costs for medical supplies and prescription drugs.
Health savings accounts are your best friends right now, so open one up and contribute as much as you can. In 2021, if you’re over the age of 55, you can contribute up t $4,600. If you’re under 55, then you can only contribute $3,600. You could also opt for family coverage, meaning you can set aside $8,200 if you’re over 55, and $1,000 less if you’re younger.
Keep in mind you might have to retire before you’re eligible for Medicare at 65. In the time between then and when you’re eligible, you have to ensure that you’re covered through your spouse’s workplace plan, COBRA, or buying a plan on a health insurance exchange, among others.
Have you also considered long-term care? When you’re in your 50s, you’ll have a better chance of qualifying for lower premiums for long-term care policies or hybrid life insurance policies, so now’s the time to look into those.
