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Your Healthcare

While there is still plenty to look forward to in 2020, some people are already looking to 2021. Due to what has occurred this year, people are reviewing what is important in their lives. The one common topic we are hearing involves their health and their healthcare. Health and healthcare play an especially important part in one’s long-term financial plan no matter one’s age.

Retirement today is not like retirement was even fifty years ago. If someone retired in 1970 at age 65, depending upon the source of data, their life expectancy could be approximately 69 for men and 76 for women. Obviously, people could and did live much longer, but at retirement, they most likely did not need to plan for healthcare expenses potentially covering 25-30 years. Jump to today, you not only have people retiring at 65, but you also have people trying to retire in their 30s and 40s. Thus, for these younger individuals, their exposure to healthcare costs could be potentially 50 plus years. The cost for healthcare now and in the future is something that cannot be forgotten in one’s retirement analysis.

Over the past week, we have had numerous conversations with clients concerning their current healthcare and potential options. Per research from the Kasier Family Foundation, approximately 49% of Americans receive employer-sponsored health insurance also known as group health insurance. Depending upon the family dynamics, if both spouses are working, they may need to choose which coverage to accept. On the other hand, if only one spouse is working, the choice for insurance may be much easier. We have spoken with clients as they are approaching their annual enrollment period and reviewing the healthcare options available to them. While there may be limited options available through a group plan, it is still important to review your plan annually. If you have any questions or would like to review, please let us know.

For other clients, turning 65 opens the world of Medicare to them. As reported by Statista, in 2018, approximately 17.8% of the US population was covered by Medicare. If you are covered by Medicare, you know next week begins the Medicare Open Enrollment Period. This is a time where individuals can make changes to their Medicare health and drug plans. Being eligible for Medicare, while seemingly simple, can be quite complex when looking at Advantage, Supplemental, and Prescription Drug Plans. For our retired clients, we spend a great deal of time reviewing Medicare and the various options they can choose. Therefore, if you have any questions or want to review the options available to you please let me know.

As we approach the last few months of the year, let us not forget to find some positive out of 2020 and look to set up the framework for an even greater 2021 and beyond.

Have a wonderful weekend.