Could unexpected long-term care costs put your retirement savings at risk?
When planning for retirement, most people focus on Social Security, investment income, pensions, and maintaining their lifestyle. But one often-overlooked expense could significantly impact those plans: long-term care.
In this episode of Thrive in Retirement, host David Bezar sits down with Randi Leese, Financial Advisor at Thrive Financial Services, to discuss how to prepare for long-term care expenses in retirement and why healthcare planning should be part of a comprehensive retirement strategy.
Together, they explore the U in Thrive’s ROUTE retirement planning framework: Unplanned Healthcare Expenses. From understanding Medicare’s long-term care coverage limitations to evaluating potential funding strategies, David and Randi discuss important considerations for retirees and those approaching retirement.
In this episode, you’ll learn:
- What Medicare covers for long-term care: Why Medicare generally doesn’t cover ongoing custodial care and what that could mean for your retirement.
- The potential cost of long-term care: How assisted living, in-home care, and nursing home expenses can affect retirement savings, with some care arrangements costing $115,000 or more annually.
- Three ways to plan for long-term care expenses: The considerations involved in self-funding, traditional long-term care insurance, and hybrid insurance policies.
- How long-term care expenses may affect retirement taxes: Why large withdrawals from tax-deferred retirement accounts could increase taxable income and potentially impact Medicare IRMAA premiums.
- Why planning ahead matters: Randi shares her family’s personal experience navigating dementia and the financial considerations that can arise when a loved one needs ongoing care.
Long-term care planning isn’t just about healthcare. It’s about understanding how potential expenses could affect your retirement income, tax strategy, and long-term financial goals.
Whether you’re approaching retirement or already retired, this episode offers educational insights into evaluating long-term care funding options and incorporating healthcare considerations into your overall retirement plan.
🎧 Listen to 3 Ways to Pay for Care Without Draining Savings on Thrive in Retirement with David Bezar.
This episode is for educational and informational purposes only and should not be considered individualized financial, investment, tax, legal, or insurance advice. Insurance solutions involve costs, limitations, and eligibility requirements. Consult qualified professionals regarding your individual circumstances.