When Medicare was signed into law on July 30, 1965 (as part of the Social Security Amendments of 1965), most people were not expected to live many years past age 65. Those who conceived the program probably never imagined how many would live decades past that age only fifty years later.
Increasing health care costs and longer life spans strain many retirees’ resources. As those approaching retirement plan for retirement income, they often fail to plan for ever-increasing health care costs. Whether it is denial or a sincere misunderstanding of the financial threat and reality of the rising costs of health care, many underestimate this line in their budgets.
Today, a healthy 65-year-old man can expect to have around $369,000 on average in health care expenses, including insurance premiums. A healthy woman of the same age can expect a number closer to $417,000. An estimated 7,000 Americans turn 65 each day, and studies show that more than half are not confident they will have adequate funds to live comfortably throughout retirement and/or cover their post-retirement health care expenses. As many voice their worst fears, they agree that Medicare benefits may not be as good in the future as they are today, and that they must plan effectively to face that scenario.
Effective planning is critical as retirement looms on the horizon. Founders’ Financial consultants can meet with you, address your concerns, and come alongside to plan for your financial future. Call 800-739-7064 to set a time to speak by phone or meet at your convenience.
and investment advisory services offered through Cetera Advisor
Networks, LLC, Member FINRA/SIPC - Founders Federal Credit Union,
Founders Financial Group, LLC and Founders Insurance Services are not
affiliated with Cetera. Investment Services is a department of Founders
Federal Credit Union. Registered Sales Branches are located at 607 N.
Main Street, Lancaster, SC 29720; 1290 Old Springdale Road, Rock Hill,
SC 29730; 100 Springcrest Drive, Fort Mill, SC 29715; 1307 Boiling
Springs Road, Spartanburg, SC 29303.
Not NCUA Insured - No Credit Union Guarantee - May Lose Value - Not Deposits - Not Insured by any Federal Government Agency.
This article was published in Founders Open Exchange Newsletter (April 2013).