Stop Guessing, Start Planning for Costs in Retirement

Your goals and priorities will probably change as you plan to retire. In fact, health care is consistently among the primary concerns of retirees and those drawing closer to retirement as they consider their post-employment finances.

This concern is due, in part, to the historical growth in health care expenses relative to overall inflation, along with the shift in retirement income and health care responsibilities. The rising cost of health care is considered one of the most serious and complex issues facing society. There is also a growing awareness of the effects of increased longevity and better medical care as it impacts an individual’s potential need for non-medical long-term living assistance. Yet many people remain unprepared or uncertain how they’ll deal with health care in retirement.

Let’s start with some basics to help prepare:

Don’t overlook long-term care insurance

If you’re able to stay healthy and active throughout your life, you may never need to enter a nursing home or receive at-home care. But the fact is, many people aged 65 and older will require some type of long-term care during their lives. That number is likely to go up in future years because people are increasingly living longer. On top of that, long-term care is expensive. You should be prepared in case you do need long-term care at some point.

Understand what Medicare covers

Signing up for Medicare is one of the first major decisions you face as you reach retirement, yet many people simply do not understand the variety of options available. To make the most of your Medicare choices, it’s important to understand your options and what the program covers in order to ensure adequate health-care coverage.

Weigh your need for life insurance

If you’re married, you want to make sure that your spouse will have enough money when you die. You may also have children and other heirs you want to take care of. Life insurance can be one way to accomplish these goals, but several questions arise as you near retirement. Should you keep that existing policy in place? If so, should you change the coverage amount? What if you don't have any life insurance because you lost your group coverage at work (though some employers let you keep the coverage at your own expense)? Should you go out and buy additional coverage? The answers depend largely on your particular circumstances.

In most cases, it’s best to talk to a professional before making any decisions.

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Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.

This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.

Ameriprise Financial is not affiliated with the financial institution.

RBFCU Investments Group is a financial advisory practice of Ameriprise Financial Services, LLC

Always consult a Medicare agent regarding your specific Medicare questions and decisions.

Before you purchase insurance, be sure to ask your financial advisor about the features, benefits, risks and fees, and whether the insurance is appropriate for you, based on your financial situation and objectives.

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