Dear Kim,
I’m recently widowed, and still working full-time. As I look toward retirement in a few years, I worry about how I’ll handle healthcare and long-term care expenses on my own. I have a retirement account that will cover my living expenses, but without a partner to rely on, how can I make sure I’m financially prepared for medical costs in the years ahead?
Sincerely,
Restructuring Retirement
Dear Restructuring Retirement,
At what age are you planning to retire? That can significantly affect your medical costs, especially if you retire before 65, when Medicare begins. There are several steps you can take now to prepare for healthcare expenses in retirement.
First, as a woman, looking into a long-term care (LTC) policy is a smart move. Women are statistically more likely to use LTC than men. There are a few reasons for this: women tend to live longer, which increases the likelihood of needing help with daily living, and they are more often widowed, as you find yourself now. Women also traditionally care for their older spouses, while men often struggle more with that role.
Next, take some time to understand what Medicare will cost you, along with a supplemental policy. You may find it’s actually cheaper than what you’re paying now; that was my experience when I moved from traditional insurance to Medicare. Just be sure to do your homework so you choose the option that best fits your needs—sorting through the choices can be confusing.
After you’ve gathered that information, review your budget and retirement savings to see whether you anticipate a shortfall. If you do, try to set aside some additional savings between now and your retirement date.
Kim
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