Step #2 – Retirement Preparedness Checklist: Insure Risks You Cannot Afford to Take

www.kimsnider.com Healthcare and long-term care costs pose very real risks to your retirement nest egg. Risk management is the foundation of a solid financial plan, especially in retirement. The most important items to plan and budget for are private health insurance if you are under age 65, Medicare and Medicare Supplement insurance if you are near or over age 65, and a solid long-term care policy. Look into employer-sponsored health coverage available to you as a retiree. Keep in mind that private-sector employers are not required to offer retiree health benefits. Furthermore, if your company provides a plan, nothing in federal law prevents them from cutting or eliminating those benefits. Make sure you read the plan carefully and compare the costs with the benefits offered. If your employer does not offer retiree healthcare benefits, you will need to turn to the non-group market for health insurance coverage. Make sure you know the costs and that you can get coverage before you leave your employer’s plan. Given the cost of private insurance, it’s important that you know what you need and what you don’t. Generally, there is a direct tradeoff between the cost of health insurance and the level of protection it provides. As you weigh this trade-off, keep this in mind you buy health insurance in case you get sick, not in case you stay healthy. If you are retiring near or over age 65, Medicare and Medicare Supplement insurance will be your primary focus when it comes to …