Retirement & Health Insurance Concerns

C L I N T O N , M I S S I S S I P P I

Early retirement can be planned, but it’s often unexpected. Over three in 10 pre-retirees say they plan to retire before 65. But many retire sooner than they intended. So, even if you plan on retiring at or after age 65, you’ll want to understand your health insurance options. Most people won’t be eligible for Medicare before age 65, but many will retire before then. 32% of pre-retirees plan to retire before age 65, but 71% of retirees actually retire before age 65. Why do some retire earlier than expected? 

Potential reasons people may unexpectedly retire early include:

• Job loss
• Unhappy with their current job
• Poor health – them or a loved one
• Spouse retires
• Financially ready to retire earlier than expected

Since most people get their health care insurance from their employers, retiring before 65 – whether planned or not – can mean a coverage gap. Finding health insurance during that gap may be expensive, but not having coverage could be even more costly and lead to poor health and well-being.

• Hospitals frequently charge two to four times the amount health insurers/public programs pay for hospital services.
  • Fixing a broken leg can cost as much as $7,500
  • A three-day hospital stay costs an average of $30,000
  • Comprehensive cancer care can cost hundreds of thousands of dollars.
• Uninsured adults are more likely to face negative consequences from medical bills, such as: 2
  • Depleting their savings
  • Having difficulty paying for necessities
  • Borrowing money
  • Having medical bills sent to collection
• Many uninsured individuals avoid seeking medical care, contributing to overall lower health and well-being

When you consider all the negative consequences of not having insurance, it’s easy to see why it’s so important to maintain health care insurance and incorporate expected medical costs into your retirement plans.

Retirement is the opportunity to live your life on your own terms. Living your healthiest life possible – without worrying about debilitating medical bills – should be part of the plan. Health care may be among the highest expenses in retirement, but by accounting for it and planning for the unexpected, you can help ensure you enjoy those years to the fullest.

We know all of this can be super overwhelming and frightening but thankfully, Cindee Herlocker with Edward Jones, has expertise with this chaos! Cindee utilizes an established process to develop personalized financial strategies for clients based on their current status and then building a path to obtain their dreams. Retirement saving strategies being one of her many focus areas. Visit her website to request an appointment or call 601.925.4653 to chat more about this. Cindee is one of the best, and she can take a stressful and intimidating process and break it down to give her clients ultimate relief!