Financial Forecast

Planning for Age 65 and Beyond

Healthcare and Retirement

By Grace S. Yung, CFP Midtown Financial Group, LLC

As you approach age 65, there are many things you should consider. For example, healthcare in retirement. This is one of the most important things that need your attention as it is vital that you know how it may impact your retirement if you don’t have proper planning in place.

Planning for Age 65 and Beyond

Age 65 is a big milestone. That’s services). That’s why Medicare Parts A and B are often referred to as Original Medicare.

To add prescription drug coverage, you can do so by purchasing a stand-alone Medicare Part D plan. Unlike Part A and B of Medicare, which are offered through the government, Part D prescription drug plans are sold through independent insurance carriers.

An alternate option for receiving your Medicare Benefits is by going with Part C, or Medicare Advantage. These plans offer the similar coverage as Medicare Parts A and B, but they may also include additional items such as vision and/or dental. Medicare

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because it is the age where people qualify for Medicare. Traditionally, 65 is also the age where many people either retire or make serious plans to do so soon.

Healthcare can be one of your biggest costs in retirement. It is estimated that an average 65-year-old in 2023 may need approximately $157,500 saved (in today’s dollars, after tax) in order to cover healthcare expenses… and this figure does not include the cost of any long-term care needs.

Medicare is a federal health insurance program in the U.S. for individuals who are age 65 and older, as well as for some who are under the age of 65 and have certain disabling conditions.

There are two main options for receiving Medicare benefits - Original Medicare and Medicare Advantage. In the past, there was only Medicare Part A (for hospitalization coverage) and Part B (for doctors’ services, equipment / supplies, and certain preventive care

Advantage plans are sold through insurance companies. So, the actual list of covered benefits, as well as the premium cost, can differ from one Medicare Advantage plan to another.

Medicare Enrollment Periods

There are various Medicare “enrollment periods,” which can help you narrow down what, if anything, you should do in order to secure the coverage that you need. These are the:

Initial Enrollment Period

General Enrollment Period

Special Enrollment Period

Open Enrollment Period

The initial Medicare enrollment period lasts for seven months. It starts three months before the month you turn age 65, includes the month of your 65th birthday, and concludes three months afterwards. If you miss the initial enrollment, you can sign up during the General Enrollment Period. However, because you’ll be considered “late,” you will be penalized with a see Financial Forecast ...page 14

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