Health Insurance for retirement

When you retire, some of your regular expenses are going to go down, but others will increase and topping the list will be health care costs.

Take health insurance coverage for example, before you retire, make sure you’ve got the resources necessary to deal with doctor’s visits and prescription drugs.

A 65-year-old couple retiring today will need, on average, $200,000 set aside to pay medical costs in retirement.

That number doesn’t include the cost of over-the-counter medicines, most dental procedures and – most importantly – long-term care (such as in-home health care or an extended stay in a nursing home).

To prepare yourself for the six-figure sums you might need to pay for health care, consider these suggestions.

* Stay healthy.

* Contribute to a Health Savings Account.

Keep in mind, though, that the contribution limits to HSAs are relatively low, so your savings will probably not grow enough to cover all, or even most, of your medical costs. But, every dollar can help.

* Plan ahead for long-term care.

* Consider putting a long-term care protection plan in place.

* Boost your savings.

No one can predict the future. But by recognizing likely costs of health care during your retirement years, and by taking steps necessary to deal with these expenses, you can hopefully avoid some unhealthy surprises down the road.