Is Healthcare in Retirement something you should prepare for? Did you know that heart attacks kill 1 in every 33 seconds in India and that air pollution causes two deaths every minute?
With these numbers, it becomes vital that you plan for medical emergencies because any unfortunate incident could strike anytime. It becomes a basic necessity to take care of your health in these circumstances and especially when you are growing old and hence, you should take care of your health in your retirement.
- 1 Healthcare in retirement, why fret?
- 2 Increasing costs of healthcare in retirement
- 3 Your healthcare in retirement
- 4 Don’t panic!
- 5 1. Proactively pay attention to healthcare in retirement
- 6 Heath insurance importance
- 7 2. Investigate in long-term care insurance
- 8 Life insurance for senior citizens
- 9 • You still have a debt:
- 10 • You have dependents:
- 11 To Leave behind a legacy:
- 12 The good, the bad, and the healthy
Healthcare in retirement, why fret?
People believe that the retirement period is all about the fun and is a rewarding period for which you save up for. it is time you wish to remodel your home, travel the world, enjoy life comfortably, and living comfortably. But every coin has two sides. And when we come to think of it, people thinking about the right parts of retirement leaves an elusive piece of your future unfunded and un-achieved: health care. Not many people can afford excellent health care, and this leads to a lousy retirement period.
We do not spend much time funding our health care, but keep in mind; it can be your most considerable retirement expense. Each year, officially, the average cost of medical costs for a retiring couple during that year is calculated. And each year, the average value is increasing owing to the rise in medical expenses — and that number is exclusive of the long-term care.
Increasing costs of healthcare in retirement
A senior citizen pays about a sum of anywhere between Rs. 20,000 to Rs. 30,000 each year in health insurance. This is a significant amount. So, before you buy any health plan, you need to assess your annual medical bills and the required health care.
However, health insurance is not only required if you have high medical bills. With increasing age, you are more likely to require specific medical care.
As heartburn-inducing as that number is, there is nothing to panic. Even couples who have not earned a fortune can manage to prepare for health care costs. And all of this can be done without robbing a bank or having to move in with their children.
in this article, we will cover the things you need to know about medical care in retirement, and preparing yourself and your budget for it.
Your healthcare in retirement
It’s likely and expected that your health would deteriorate after withdrawal as you get old.
It’s hard to think about declining health as compared to thinking about mortality, as the latter is inevitable.
But it is a fact that your health will deteriorate overage. In India, most of the people above the age of 65 have multiple chronic conditions (medical conditions that last a year or longer and require ongoing medical attention). in turn, leads to a lack of energy, and you may not enjoy your retirement to the fullest. All your dreams to enjoy with your family come shattering down. Some common diseases that you might have heard of are Alzheimer’s or another form of dementia.
Hence, the fact to be worried about is that these people do not get enough out of their retirement period, and their budget crosses the boundaries and capacity.
As retirement nears, you have big decisions to make. These include- when do you plan on stop working, how much do you want to pay for health care, and also, how you want to generate cash from your assets.
These decisions directly impact your living costs and lifestyle in retirement—and also, it is a defining factor at which age you can retire.
But if you try postponing retirement or save enough money to cover health care costs until 65, then you can efinitely be in a better position than others.
While deteriorating healthcare in retirement is a condition to worry about, but it’s definitely nothing to panic about. There’s so much you can do to avert the disaster. There are many savvy strategies you can adopt at the moment to make sure health care does not overwhelm your retirement budget.
Let’s start with the most critical tip for health care i.e., taking care of health!
1. Proactively pay attention to healthcare in retirement
What better than taking preventive measures that help you save a lot of money. A mixture of proper sleep, exercise, and a good diet may not seem like an essential part of your financial plan. Still, it will potentially have a higher return than any investment as healthcare is the most significant investment.
Taking care of yourself can improve your health and help reduce the need for medical care as you age.
However, keep in mind that the fittest ultramarathoner who consumes only kale smoothies is not immune to poor health. But you will never regret taking care of your health and yourself.
Heath insurance importance
Health insurance is not only necessary if your medical expenses are high. With age, you will require specific medical care. You also quickly encounter serious illnesses or ailments, and it could be costly to pay for treatments. This can quickly reduce your retirement savings. A suitable health insurance policy will provide financial cover in these situations, so you need not worry about it. Individual plans also offer routine health check-ups, which can help you keep track of your medical history
2. Investigate in long-term care insurance
You actually need to ensure that you invest in long-term care, which helps a senior citizen with daily living activities like bathing, dressing, eating, etc. Private health insurance in the market does not cover this kind of care. So, any retiree who needs it will be on the hook to pay for it himself. Any person above the age of 65 needs long term care as a security blanket.
Long-term insurance plans can help you pay for your non-medical long-term care even after attainment of the “elimination period,” This lasts from 20 days to 120 days. Until that time, you will pay for your attention on your own.
But keep in mind, long-term care insurance is not at all cheap. Prices differ according to the plan you choose.
Life insurance for senior citizens
Most senior citizens tend to pay their debts at the time of retirement. By that time, their children are also established and have an earning. So, many people wonder whether or not a retiree needs to continue having a life insurance plan. If you, too, are one amongst them and have been considering what to do, then you should look at your current financial scenario. You must continue with having a life insurance plan if:
• You still have a debt:
Be it an unpaid home loan or any other business loan, you will need to pay off the ongoing debt. Supposedly, you discontinue your life plan, and something may happen to you. In this case, your aged spouse or children may then have to bear the responsibility to pay off the debt.
• You have dependents:
Are your parents living with you, or you have a partner or child to support? In these cases, if you have people who are dependent on you, then you must carry on with your life plan even after retirement.
To Leave behind a legacy:
If you have any children and you want to leave behind a legacy for them, then you need a life insurance policy. This way, if anything happens to you, then your nominees will be entitled to a massive pay-out. However, if you don’t have dependents, then a life insurance policy will not be the best option.
The good, the bad, and the healthy
Health and life insurance might not be an essential thing for all senior citizens. The requirements of these policies differ from one person to person. Also, Healthcare in retirement need not overwhelm your budget, but instead, it needs to fit into your budget. If you ensure that you recognize the potential costs of health treatments and understand the policies, then you can prepare for your medical needs as you age