New Power Generation Inc.
NPG Financial Services Inc.
7726 Winegard Rd, Suite 17
Orlando, FL 32809
(407) 929-1684
npgfs1@gmail.com chrislopez@npglife.us

U.S. Chamber of Commerce Member 2021

Retirement Read Time: 2 min

Money that Buys Good Health is Never Ill Spent

According to the Kaiser Family Foundation, the average person covered by Medicare has out-of-pocket medical expenses in excess of $5,400 a year. Premium costs accounted for 42% of the total, while long-term facility costs, medical supplies, prescription drugs, and dental care claim most of the rest of the costs.1

With healthcare expenses in the spotlight, it’s incumbent upon us to make sure our retirement strategy anticipates these costs.

But that’s not enough.

Remember, healthcare coverage (including Medicare) typically does not cover extended medical care. And it’s a prospect we shouldn’t overlook.

The Administration for Community Living estimates that about 60% of people will need extended care at some point in their lives.2

These annual costs can range widely based on geographic location and the type of care required. An assisted living facility will cost over $80,000 per year in Alaska. In Oklahoma, in would cost around $46,000 a year.3 When workers were surveyed, only 15% said they were “very confident” they would have enough money to pay for extended care in retirement.4

Finally, you may want to consider a Medigap policy, which may help cover some of the healthcare costs not covered by Medicare.

Making sure that you are properly insured for your medical costs may help strengthen the foundation of your retirement.

1. Kaiser Family Foundation, November 4, 2019 (Based on 2016 data, which is the latest available.)
2. Administration for Community Living, January 4, 2021
3. Genworth Cost of Care Survey, 2021
4. Employee Benefit Research Institute, 2020

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Fallen Tree Damage—Who Pays?

Fallen Tree Damage—Who Pays?

Your liability for damages that occur when a tree on your property falls on your neighbor’s property is not clear cut.

Questions to Ask About Medicare

Questions to Ask About Medicare

Take the guesswork out of your IEP or SEP with this helpful article.

Understanding the SECURE Act 2.0

Understanding the SECURE Act 2.0

A timeline covering a few of the major provisions of the SECURE Act 2.0.

 

Have A Question About This Topic?







Thank you! Oops!

A Taxing Story: Capital Gains and Losses

Understanding how capital gains are taxed may help you refine your investment strategies.

Key Money Moments: 4 Times You Should Talk to a Pro

Life happens fast, and your finances can take a backseat if you’re not careful. Is it time to check in with a financial professional? This infographic will help you examine your own financial situation and decide if it’s time to step up your financial game.

Retirement Plan Choices for Small Businesses

Retirement choices can be intimidating. Picking the right strategy.

View all articles

Saving for Retirement

This calculator can help you estimate how much you may need to save for retirement.

Historical Inflation

This calculator shows how inflation over the years has impacted purchasing power.

Home Mortgage Deduction

Use this calculator to assess the potential benefits of a home mortgage deduction.

View all calculators

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

View all presentations

Working With A Financial Professional

A financial professional is an invaluable resource to help you untangle the complexities of whatever life throws at you.

The Latte Lie and Other Myths

Check out this video to begin separating fact from fiction.

The Power of Compound Interest

Learn how to harness the power of compound interest for your investments.

View all videos