We hate to burden our readers with endless dire survey results, but there’s no debating the point that forewarned is forearmed.
We advocate a simple maxim: it’s almost never too late to take steps to improve your retirement plan. Note the caveat ‘almost’ – the sooner one acts, the better: planning for post-employment living and healthcare expenses is no trifling matter.
So now for the survey: HealthView Services, a company offering web-based planning tools to help people calculate retirement costs, including healthcare, projects that the average retiree will pay nearly $390,000 in 2019 dollars on healthcare over the span of their retirement. What can be done to cover this dizzying sum?
HealthView’s CEO Ron Mastrogiovanni believes that “Americans are not powerless when it comes to planning for future health care costs.” Improving one’s health today is a solid first step, he says. Any savings in medical costs during your final working years can be invested in your retirement plan, he says, while the benefits of taking a healthy lifestyle into retirement are patently clear.
Simple steps can bring solid benefits. If you suffer from high blood pressure, seek competent medical care, take your meds, cut down on salt and start a program of moderate exercise. HealthView calculates that a male taking these steps at age 45 can save over $3,500 per year in healthcare expenses, each and every year, before he retires. Over 20 years or more, that’s a huge amount of saved capital that can be directed into a retirement plan.
Those last two words indicate something as crucial as a healthy lifestyle. HSAs, Roth 401(k) plans, Roth IRAs, insurance policies and other strategies can provide the income for a comfortable, healthy retirement. Making regular contributions into your retirement accounts is as vital as taking your medicine.
For more information, please read:
Small Changes Can Make a Big Dent in Retiree Health Care Costs | ThinkAdvisor