AT&T

Whether you’re an AT&T employee or you’re employed elsewhere, in working towards a comfortable, secure retirement, medical expenses are a big part of the mix. Despite the prevalence of online calculators and financial experts, you may still be feeling uncertain as to what you should budget for to address your goals.

When you retire, you’ll find that like most retirees, a lion’s share of your budget will likely go to medical costs, starting with Medicare. You will be responsible for premiums, as well as any increases that occur during your retirement, plus copayments, costs and deductibles. It’s a good idea to budget for these costs and any unforeseen medical emergencies that may occur after you retire.

The Employee Benefits Research Institute (EBRI) cites that Medicare currently covers roughly 62 percent of an individual’s medical expenses and that this figure could potentially decrease in the future (Jan/Feb 2013). Understanding some basics about Medicare now can help you plan for what you’ll need later. If you have minimal health issues, for instance, you may be well-served by Original Medicare (often called Part A and Part B). Or you can opt for a Medicare Advantage Plan (Part C). This plan is provided by private health insurance companies and is more expensive and more comprehensive.

Fortunately there are a variety of ways to save, earn or pay for the medical expenses you’ll likely have in retirement. Some employers provide a level of medical coverage after you retire. If you’re nearing retirement, find out if your employer offers medical coverage to its retirees.

Working part time in the early years is a great way to limit the amount of withdrawals from your retirement account. Reserving a little money above and beyond your projected health care costs is another great way to ensure you have funds for any unexpected health problems.

Having a long-term investment advisor on board can help you to budget appropriately for the medical expenses, and the life of leisure you’ve envisioned for yourself in retirement. If you’re currently looking for an investment advisor, call us at 847.382.2600 or visit us at mooneylyons.com. We can personalize a retirement investment strategy that seeks to provide the financial security you need to retire in confidence.

 

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