Proper retirement planning is vital for securing financial well-being during the later stages of life. Among the crucial aspects that are often neglected, healthcare expenses stand out. While healthcare is a necessity for retirees, it can also be one of the most significant uncertainties. The fear and uncertainty surrounding these costs can be daunting, but with meticulous planning, these challenges can be effectively addressed.
Rising healthcare costs are becoming a large part of retirement planning and will continue to be in the future. At the age of 65, an average retired couple should factor in approximately $315,000 to address healthcare expenditures over the course of their retirement years1 . These expenses can be applied to your long-term care, housing changes, growing medical concerns, etc. Planning for these costs in advance can secure a nest egg for you and your family to fall safely on, should you come across healthcare that needs this attention.
One way to combat this is by utilizing a Health Savings Account (HSA). These tax-advantaged accounts can help save money that’ll go towards healthcare expenses. Using your HSA as a savings tool encourages growth, and when you retire, you can reimburse yourself for past expenses.
Another crucial consideration in retirement planning is the role of Medicare in managing healthcare expenses. Early retirement decisions can significantly impact your healthcare coverage and the timing of Medicare benefits. Before finalizing your retirement age, it becomes essential to thoroughly grasp your existing coverage, anticipate changes upon retirement, and explore additional options that may be necessary to adapt to potential shifts in coverage plans. Understanding these aspects will help you make informed decisions about your retirement and healthcare needs.
While certain healthcare expenses may be beyond our control, adopting a healthy lifestyle and scheduling regular medical checkups empowers us to manage potential health risks. Prioritizing prevention and early detection enhances our understanding of our well-being and can positively impact our quality of life. By combining prudent financial planning with proactive health maintenance, we can approach retirement with greater financial confidence and peace of mind. Taking charge of our health and finances puts us in a better position to embrace the future with optimism and preparedness.
We understand that planning for retirement expenses can be overwhelming due to the many uncertainties involved. As financial professionals, we’re here to support your planning journey by answering questions and connecting you with other necessary professionals. Give us a call today at (540) 720-5656 and let’s talk.
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Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.