It is something that a lot of people don’t seem to consider when it comes to retirement, especially in places like the United States.
That is, how much will your care later in life cost? Also, how will you save for it? Or, are there any options that can help you to better save for it?
This is one of those areas that can be seemingly impossible to predict. However, there are some ways you can be somewhat prepared for it and here, you will be shown how you can make sure your health needs are taken care of in older age.
Estimate Future Care Needs
Do you have any health care needs at the current time? Is there a family history of ailments like Alzheimer’s or Parkinsons? Also, be honest with yourself, what is your lifestyle like?
You should also research the costs of in-home care in your area, as well as the costs of assisted living. With these estimates behind you, it is worth then looking into asset management help, to make sure any money you have can be invested wisely to meet those costs.
Invest in Long-Term Care Insurance
With those figures in mind, it is wise to look into long-term care insurance. These are, as the name suggests, options to help cover the costs of services that your typical insurance or Medicare may not cover.
If you can, try to purchase these policies earlier in life, as this will mean you pay lower premiums. Also, it is worth considering the coverage options of the insurance you choose carefully. Some of these are more targeted to conditions like Alzheimer’s, and others are aimed at physical health care conditions. So, read the small print before you sign!
Build a Dedicated Savings Fund
You will also be glad to learn that there are many accounts that are tax-advantaged that offer help with future care expenses.
These include options like Health Savings Accounts (HSAs) or 401(k) ‘s. For the latter, make sure you look into the withdrawal options; those are often not tax-free, and you may face a penalty charge if you withdraw from this account early.
Create an Estate Plan
Looking at an estate plan will ensure that your financial resources are managed effectively and as you want them to be.
You can talk to solicitors or lawyers about establishing a living will, as well as healthcare directives that will lay out the care you want to receive, in the event that the worst should happen. You should also aim to set up a power of attorney, as this will designate someone to manage your financial and healthcare decisions if you aren’t able to.
Explore Government and Community Resources
There are specific circumstances that can help with future care expenses, too.
If you are a veteran, you can get veteran benefits and see if you qualify for VA long-term care. There are also community support programs that offer low-cost or subsidized senior services, which can all help to reduce costs that you may have in your golden years.
