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CHAPTER 6
HEALTHCARE
Individuals who have high deductible plans often have Health
Savings Accounts; it's not uncommon for health insurers to
offer these savings accounts. Each year you decide how much to
contribute to your HSA although you cannot exceed the
government mandated max (See Current Year Tax Rules). These
dollars are pretax, grow tax-free; and if you use these funds for
eligible health expenses, you don't pay tax on the distributions.
Health Savings Accounts are a great way to save for future
medical expenses.
Another consideration is purchasing private Long-Term Care
Insurance. According to a 2017 Morningstar study, 52.3% of
people turning 65 will have a long-term care need during their
lifetime
21
. While Long Term Care insurance will not help with the
day to day costs of medical expenses, it can offset the cost of
care when unable to care for yourself.
As you are approaching retirement, it may not be wise to take
on all these decisions on your own. Pairing with a professional
to guide and work cooperatively with you will often lead to the
best outcomes. It's incredible to think that by the time this is
published, it is likely that our health insurance options will have
changed or evolved again. Due to this moving target, it's easy to
see why there is a fear or lack of
decisiveness when it comes to retirement.
The unknown is what drives many
individuals to continue to work. Health
insurance is yet another area where the
burden has been shifted from the
government and employers to you.
Personal responsibility is the name of the
game, and partnering with a trusted
professional and educating yourself are
the best strategies in that game.
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. https://www.morningstar.com/articles/879494/75-mustknow-statistics-about-longterm-care-2018-ed.html