Healthcare is one of the biggest expenses retirees face, yet many don't plan for it at all. In fact, according to a Nationwide survey, 4 out of 5 people can't even estimate how much they expect to pay for healthcare during retirement. Can you?

I can help you prepare for these costs so they don't take you by surprise. Let me show you the two biggest surprise costs retirees face.

Surprise Cost #1: Medicare

Many seniors don't expect to pay anything for healthcare once they enroll in Medicare. Unfortunately, you'll still have familiar things like co-pays, deductibles, and co-insurance. Here's a look at how those costs stack up:

Monthly Annual*
Medicare Part A $0 $0
Medicare Part B $170.10 $2,041.20
Medicare Part D (Average) $40 $480
Medicare Supplement Insurance
$178 $2,136
Total per person $388.10 $4,657.20
Total per couple $776.20 $9,314.40

These numbers will change a little bit depending on your income bracket and your state. The figures above assume your modified adjusted gross income is less than $182,000 for a married couple filing jointly; if your income is higher, you'll pay extra for Medicare Part B and D. Either way, take a look at that annual total per person. Did you budget at least $4,657.20 per person for your Medicare-related costs?

Surprise Cost #2: Long-Term Care

Most of us will need long-term care at some point. In fact, 7 out of 10 folks over age 65 require this kind of specialized care. The costs add up quickly. Here's a look at average total costs for five different types of long-term care services**:

Home Health Aide Adult Day Care Assisted Living Nursing Home
(Semi-private room)
Nursing Home
(Private room)
$61,776 $20,280 $54,000 $94,896 $108,408

And now for the bad news: Medicare does not cover long-term care expenses. These figures you see above are what most people have to pay out of pocket for the care they need. Sometimes, their families pitch in to help lighten the load. Other times, they are forced to sell their homes or liquidate other assets just to pay for treatment.

The good news? You still have time - your future doesn't have to turn out this way.

The Solution: Long-Term Care Insurance

Good planning can help you handle these costs. Step one is looking into long-term care insurance.

According to the American Association for Long-Term Care Insurance (AALTCI)***, a traditional policy valued at $165,000 in benefits would cost a 55-year old male $950 per year. A 55-year-old woman could expect to pay a little more, at $1,500 per year. Let's say you bought a policy at age 55 and paid into it for 20 years before you needed care. You'd have paid a total of about $19,000 - $30,000. Now compare that to the cost of each of the five types of care above.

It doesn't take a math whiz to realize that you're saving a huge amount with long-term care insurance. This video explains more about how long-term care insurance protects your assets:

Securing your financial future during retirement is as easy as getting a free quote. Call or email me to get started now!

*Medicare costs from U.S. government Medicare Handbook, 2023. Medicare Part D costs vary by state; $408 represents the 2022 national average. Medicare supplement insurance costs represents an average; actual cost varies by plan and state.
**Genworth Cost of Care Survey, 2021
***2022 Price Index For Long-Term Care Insurance