What you need to know about health care in retirement

It would be nice to believe that rising health care costs were a temporary phenomenon. Unfortunately, it is not the case. The cost of medical care has outpaced inflation over the past 20 years, and predictions are that the costs of medical care and long-term will continue to increase in the future.

The decisions we make about how and where we live to retirement are unique to each individual or couple. The options open to us, however, are often determined by our financial resources, our ability to pay. Here are the different ways to pay for health care costs and long-term care in retirement, which can help you as you make decisions about your pension

insurance plans -health retirees. If your company provides retiree health benefits, make sure you know how much premium you will be required to pay and deductible and co-payment requirements. retiree health insurance plans are generally designed to coordinate with Medicare benefits. Warning:. Even if your employer is providing retiree health care benefits, there is no guarantee these benefits will be available when you retire

Medicare and insurance "Medigap" most people qualify for Medicare insurance when they turn 65. Medicare helps protect against the cost of medical care during retirement. One fact, however, is obvious: There is no free lunch. Have costs related to health care and the likelihood is that these costs will continue to rise each year

Medicaid. Medicaid is a federal program and the common state that helps medical costs for some people with low incomes and limited assets. Medicaid is essentially a safety net for those who did not provide enough for their financial needs in retirement, or who met unexpectedly large expenditures that drain their financial resources

long-term care insurance. long-term care insurance can put you in control, protecting your assets and dignity, while allowing you to select the type of installation and the setting in which to receive care services long duration, if necessary.

personal savings: Review your retirement plan to make sure it take sufficient account of the potential costs of health care and long-term care in retirement. If you find a shortfall, you can increase your personal savings now in order to have sufficient funds available after retirement

Home Equity :. Many retired people have accumulated a substantial net worth their homes. There are a variety of ways to use equity if needed to pay retirement health care costs

The return to work :. Regarding the planning of health care needs as we age, it is time for a reality check. How many 70+ year-old people with health problems really want to be looking for a job?

Do not wait until it rains to start building your ark. Plan ahead so that choices are always yours to make! Contact your agent or financial advisor for help with this type of planning.