Financially planning for your retirement and beyond is important to look into well before you need access to your designated funds. “Life Care” is defined as long-term health care, housing, social activities and other services that maintain welfare for older adults. Financial establishments recommend starting to save for this as soon as you enter the workforce — however, other benchmarks can help you determine your current level of preparation or, alternatively, create tangible goals for saving. But just what, exactly, are the associated costs of retirement, healthcare and more?
According to Fidelity Investments, you should have about 8x your income saved in retirement funds by age 60, and 10x by age 67. For many, the average total ends up being around $1 million. Though a seemingly daunting number, with an established savings plan, this can become a reality by the time you decide to retire.
But how much will you spend?
Your savings and how much you plan on spending annually are two different amounts. Nerdwallet suggests spending 70% of your former income per year while in retirement. Fidelity Investments suggests that you should expect to spend 55% – 80% of your current income annually. Of this, expect to spend 15% of your living expenses each year on health care expenses. These costs could potentially rise depending on changes in your health or the need for more prescriptions and/or specialist care.
Costs of Health and Life Care
Annuity.org estimated healthcare costs (not including long-term care) for a healthy 65-year-old couple retiring in 2019 to be:
$16,155 in 2024, at age 70
$21,164 in 2029, at age 75
These projected costs continue to rise in following years. Costs were based on:
- Medicare premiums
- Value of U.S. dollar
- Supplemental insurance costs
- Out-of-pocket expenses
Ways to Plan and Potentially Reduce Life Care Costs
One straightforward way to help lessen the effects of potential health and life care costs is to focus on continuous maintenance and monitoring of any current health care issues and to also keep up with standard wellness check-ups. High and unexpected costs can be the result of medical emergencies. Though emergencies are unpredictable, maintaining your health by consistent doctor’s visits and maintaining physical activity can assist in keeping costs down.
Having a plan/savings if a medical emergency does happen, including a long-term care insurance policy, is advisable. Having legal and financial forms filled out and up-to-date is also advised.
Having your home assessed may be something that has not crossed your mind – but it can come into play, especially if you have multiple floors and sets of stairs, or if you simply need some extra lighting in a dim place.
Make sure you understand all benefits included in any of your current insurance policies, including Medicare. Knowing what is in-network and what is not is key. Discovering what services are low-cost can also be helpful in scheduling and planning for routine check-ups.
How Sun Health At Home Can Help
Sun Health At Home provides a wide range of services to help benefit older adults both day-to-day and long-term. Sun Health At Home’s mission is to provide a holistic wellness plan for older adults though personalized coordinated services and a myriad of programs, all in the comfort of their own home. This makes Sun Health At Home a unique option when considering your plan and strategy for the cost of life care.
As a member of Sun Health At Home, you are paired with a Wellness Coordinator who is available 24/7. They can assist in transportation and organization of medical appointments and can even provide facility-based services like skilled nursing and memory support. This means Sun Health At Home can be your main source of both short- and long-term care, centralizing all your needs and allowing your Wellness Coordinator to manage them. In addition, Sun Health At Home provides both legal and financial planning support and makes sure your care costs remain as low as possible over time.
Your Wellness Coordinator is also equipped to assess your home, providing insight into ways you may be able to prepare it for future use, including slight adjustments such as new lights, handrails, and more. Preventative measures such as this can greatly reduce the risk of potential falls down the line and are an easy way to ensure your space adjusts with you, instead of becoming an issue.
Additional benefits to a Sun Health At Home membership include access to the retirement communities’ services (such as their food, gyms, libraries, and more) providing more ways to socialize, stay active and learn something new.
Conclusion
Preparing for the costs of both retirement and care can seem like an overwhelming task, but with preparation, and appropriate support, you can be ready for the future. Sun Health At Home can answer any of your questions regarding services and more.
