When thinking ahead about your retirement, most people start with a strategy designed to help replace a portion of their working life income. Unfortunately, this leaves out the possibility of high medical expenses, which can often increase in costs in older age.
Because many people do not budget for this appropriately, they end up struggling with these costs in their golden years. As health care costs continue to rise, it’s important to remember that you may be shielded right now from the vast majority of health care expenses because they’re covered by your employer or your insurance company. Some studies suggest that retirees should set aside at least $300,000 or more for health care costs over the course of retirement, an amount that may seem completely out of reach for plenty of people saving now.
Thinking carefully about all of the different avenues of saving for health care costs, and doing everything possible to preserve your overall medical wellbeing can all help make it possible for you to adapt and adjust quickly. One common example is what might happen if you need long term care support. Long term care refers to stays in places such as nursing homes in which you are unable to complete at least one of the six activities of daily living. Without money set aside for this long term care insurance or Medicaid approval, these costs can be catastrophic for your retirement savings, or can even decimate shared savings with your spouse.
Speaking with an estate planning and an elder lawyer can help you to document your best strategy for saving ahead for the future. Reach out to our Michigan estate planning office for more assistance with long term care planning needs.