Healthcare & Long-Term Care Planning
Protect your retirement from rising medical and care costs
Rising Healthcare Costs in Retirement
Planning Ahead So Medical Expenses Don’t Derail Your Future
Healthcare is one of the largest and fastest-growing expenses many retirees face. Premiums, prescriptions, out-of-pocket costs, and potential long-term care needs can add up to significant sums over a retirement that may last decades. Without a plan, these costs can quickly strain even a well-funded nest egg. We help you estimate likely healthcare expenses, build them into your retirement budget, and explore strategies and tools to manage them over time. With proactive planning, healthcare becomes a known factor rather than a constant financial unknown.
Understanding Medicare and Your Options
Making Confident Choices About Coverage and Timing
Medicare provides critical healthcare coverage in retirement, but its rules and choices can feel complex. We walk you through the basics of Parts A, B, and D, as well as the decision between Traditional Medicare with a Medigap policy and Medicare Advantage plans. Enrollment timing matters, especially if you are still working at 65 or have employer coverage, and missing key deadlines can lead to penalties or gaps. Together, we evaluate your health needs, budget, and preferences to help you choose a path that fits your situation. While we don’t sell insurance products, we act as your guide so you can make informed decisions with confidence.
Planning for Out-of-Pocket Costs and Everyday Care
Building Healthcare and Medical Spending Into Your Retirement Plan
Even with Medicare and supplemental coverage, retirees still face meaningful out-of-pocket expenses. These may include premiums, deductibles, copays, dental and vision care, hearing aids, and other items not fully covered. We help you set realistic expectations and incorporate these costs into your retirement budget from the start. For clients with Health Savings Accounts (HSAs), we explore how those funds can be used tax-advantageously for qualified medical expenses. By planning ahead, you’re less likely to be caught off guard and more able to focus on your health rather than the bills.
Long-Term Care Planning and Family Protection
Preparing for Care Needs While Preserving Independence and Assets
Long-term care involves help with daily activities over an extended period, whether at home, in assisted living, or in a nursing facility — and these services are not fully covered by Medicare. We discuss the likelihood and potential cost of long-term care, then explore the strategies that may fit your situation, including traditional long-term care insurance, hybrid life or annuity policies with long-term care benefits, and structured self-funding approaches. For some, a policy purchased in their 50s or early 60s can offer meaningful protection; for others, earmarking assets or planning to use home equity may be more appropriate. We also consider how care costs could affect a spouse or family members and structure the plan to protect both your quality of life and your legacy. Thoughtful long-term care planning gives you and your loved ones a clearer path if care is ever needed.
Common Questions About Healthcare and Long-Term Care
Your Retirement Healthcare and Care-Planning Questions, Answered
How should I plan for healthcare costs in retirement?
Planning for healthcare costs starts with recognizing that they will likely be a significant and growing part of your budget. We help you estimate premiums, out-of-pocket expenses, and potential long-term care needs based on your health, coverage choices, and time horizon. These projections are then integrated into your retirement income and spending plan so healthcare is accounted for, not an afterthought. With a clear picture, you can make more confident decisions about savings, insurance, and when to retire.
Do I need long-term care insurance, or can I self-fund?
Whether you need long-term care insurance depends on your assets, income, health, family situation, and comfort with risk. Insurance can protect savings and provide more predictable coverage, but premiums can be significant and need to be weighed against other priorities. Higher-net-worth clients may choose to self-fund by earmarking assets or planning to use home equity, but even then, a structured strategy is important. We compare the tradeoffs of each approach so you can choose the path that best fits your goals and values.
What’s the best Medicare plan for retirees?
There is no single “best” Medicare plan — the right choice depends on your health needs, preferred doctors, travel patterns, and budget. We walk through the differences between Traditional Medicare with a Medigap policy and Medicare Advantage plans, including how they handle networks, out-of-pocket costs, and extra benefits. We also review prescription coverage options and how they fit into your overall healthcare strategy. Our role is to help you understand your choices and choose a plan that feels like a good fit, not to sell any particular product.
When should I start thinking about long-term care planning?
It’s wise to start considering long-term care in your 50s or early 60s, when you typically have more options and more favorable pricing if you choose to buy insurance. Early planning lets you think through how you would want to receive care — at home, in a community setting, or otherwise — and how that care would be funded. Waiting until care is urgently needed often limits choices and puts pressure on both finances and family. By planning ahead, you retain more control and reduce the likelihood that care decisions are made in crisis mode.
How often should I review my healthcare and long-term care plan?
Healthcare and long-term care plans should be revisited regularly, especially during Medicare open enrollment and whenever your health or coverage changes. Premium adjustments, new plan options, and shifts in your medical needs can all affect what’s best for you. We also consider how major life events, such as the loss of a spouse or a significant diagnosis, may change your care and funding requirements. Ongoing review ensures your coverage and financial plan continue to support your needs throughout retirement.
