The general opinion is that retirement is a blissful period. Is it really the case? In reality, retirement is a period that requires an immense amount of pre-planning, right from finance, housing, health and much more. Everyone is prepared for retirement but nobody expects the hidden costs of retirement life, especially the sneaky ones with respect to healthcare. There is no warning about them but they hit you like a bulldozer if ignored for too long.
One of them is healthcare costs in retirement planning. Many retirees are too stressed about covering healthcare costs during old age. Including healthcare costs in retirement planning right at the start is a crucial step. Retirement is more complex than people imagine it to be.
Healthcare costs in retirement planning can eat into your retirement savings if you’re not careful and you do not even realize it snowballing into something big. Apart from the regular healthcare costs, retirees sometimes overlook vision and dental exams that are necessary. There are different costs that come into play once retirement hits. Here we list down some of the hidden costs for you.
Medicare is not free
The entire program or policy is not free, there are still some parts you pay yourself. Medicare recipients pay a monthly premium which increases as the income goes higher. Cost of medicines are not included in the cover sometimes and depend on the policy you opt for. These are some additional costs to be taken into account as it can be heavy on the pocket.
Extra insurance beyond Medicare
We’ve already told you that Medicare doesn’t cover all costs. It only provides 80% of the expenses. What is the solution to this? Taking an additional healthcare policy for covering the 20% gap. The cost of extra and much-needed health insurance is an easily overlooked expense. Do make it a point to give heed to it.
Long-term medical expenses
Old age can hit different people differently. It all depends on how healthy you are. For some people, there may come a time when they are not able to care for themselves. For many, spending their old age or retired life in an assisted living facility or a retirement community is a reality and this requires funding. This is one of the major healthcare costs in retirement planning.
Old parents taking care of their kids
This is still a phenomenon that is widely prevalent in India. Children do not move out of their parents’ houses once they turn 18. They continue to live at home, the costs of which are mostly borne by the parents. Careful retirement planning and savings need to be made in order to avoid any kind of financial surprises later on.
Inflation rates to be kept in mind
This is a sneaky but a sure expense to hit you in the future. Whenever you’re planning your retirement finances, do include the inflation rates beforehand for a safe, secure and happy retirement life.
Hope these points give you a heads up when it comes to planning your retirement finances perfectly. If you are looking for the best place to spend your retirement years at, do give us a call @ +91 99419 95555 and we will let you know why choosing The Chennai Homes is the best for you! We wish you a happy retirement!