With increased longevity the impact of health care costs become a bigger factor in your retirement planning. The rising cost of prescription drugs and Long-Term Care are two items many people don’t think about before they retire. Yet these costs will have a dramatic impact on your savings and lifestyle once a you retire.
Many professionals suggest putting money in Health Savings Accounts if their employer offers a health insurance option that includes a HSA. This is money you can use now, on a pre-tax basis, to pay for insurance deductibles and Long-Term Care Insurance premiums. Once you are 65 you keep the money, growing tax deferred, which can be used for health related expenses tax-free.
Long-Term Care insurance can help retirees avoid dependence on relatives. Often family members become caregivers in the absence of any advance plan. This creates a tremendous burden on them and their families. Once the family is no longer able to provide care the cost of long-term care, either at home or in a facility, is expensive and creates a huge impact on the lifestyle of the other spouse.
"Long-Term Care insurance can address one of the biggest worries retirees have: being able to manage a long-term illness or disability without becoming dependent on their children," said Kimberly Foss, founder of Empyrion Wealth Management.
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The financial costs and burdens of aging should be addressed in advance of retiring so you can enjoy a successful retirement. The best time to get Long-Term Care Insurance is before you retire. There are a number of affordable options which will fit your budget. There are health requirements and each company has different underwriting standards. A specialist in long-term care planning can design an appropriate plan and shop to obtain the best coverage at the best value depending on your age and health.
LTC insurance will pay for care at home, adult daycare, assisted living memory care and nursing home care. Tax benefits are available for some people as well. In most states partnership plans are available which provide additional dollar-for-dollar asset protection.