Legislative Changes Affecting The Average Health Care Costs In Retirement
Are you familiar with changes in legislation that have had an impact on the average cost for health care in retirement? Certain recent Congressional provisions have resulted in increased taxes, decreased Social Security benefits and increased average health care costs in retirement for retirees. So what does this mean for you as a future retiree? It means that thanks to these provisions your cost of health care in retirement is now a mandatory expense. It also means that those who have no assets going into retirement will be forced to pay this increased health care costs out of their decreasing Social Security benefit check. For those who do have assets going into retirement, you are not off the hook – regulations now make it obligatory that you pay even higher average prices for your health care in retirement.
Health Care In Retirement – The Choice Is Really Not Yours
Since 1993, thanks to a change in the Program Operations Manual systems for Social Security, it has been mandatory that when eligible seniors enroll in Medicare. Otherwise, if the eligible senior does not, then they will forever forfeit their rights to any past, present or future earned Social Security benefits. Luckily, in 2003, changes were made that allowed for late enrollment. However, if you enroll late in Medicare then you face a Late Enrollment Penalty that will remain attached to your name for the remainder of your life. So, in actuality you have no choice as to whether or not you wish to use Medicare, you have to and if you don’t you are penalized.See Our Story
Expect To Pay The Average Health Care Costs In Retirement, You Are Required To
Gone are the days when you could take advantage of your hard earned Social Security however you please and roll the dice on your health care costs. In today’s society you are forced to use Medicare for health care coverage purposes and furthermore forced to pay the premiums from your Social Security check. Therefore, it is wise to educate yourself prior to retirement on what the average health care costs in retirement actually are. This is in an effort to properly plan for the impact that such obligatory costs will have on your Social Security benefit.
What Is The Average Health Care Cost In Retirement?
Many people eager await their retirement days with long lists of places that they will travel, the things that they will do and even perhaps stuff that they will buy. Not many, however, look past the “dream” that retirement it to see what a financial burden it actually can be if not properly prepared for. Do you know what it actually will take you to retire? In terms of health care, do you have any idea what percentage of your retirement income will be spent on your health? Recent studies have revealed that 7 out of 10 people anticipate their average health care costs in retirement to account for a mere 10 percent of their retirement income. In actuality though, this factor is more like an average of 30 percent. Imagine how many plans that’ll wreck if not accounted for!
According to Fidelity, last year a retired couple spends about $220,000 on health care in retirement. Mind you, this does not include any long-term care. Regardless, of how good some Medicare coverage may be, it does not cover all expenses. In fact, it is estimated that it only covers an average of 51 percent of medical expenses. A lot of factors go into what your average health care costs in retirement will be and so it can be difficult to formulate a reliable guesstimate on your own.