Financial Planning For Senior Healthcare

Evaluate Needs and Calculate Options

Few things are guaranteed in the game of life. Healthcare costs just might be one of them. At some point, most people will face ongoing and potentially large healthcare costs. The odds increase dramatically with age. Now is the time to prepare for healthcare costs as you age. Follow this simple path for planning.

Lifestyle 

• Do you have a plan to get to the store and doctor appointments when you stop driving?

• Have you considered having services come to your home when you stop driving? 

• Do you know how your health conditions will progress with age?

• Have you thought about staying in your home versus moving elsewhere as you age?

• Do you know the senior services support organizations in your community?

• Do you have a support system in place if you are caring for a loved one with Alzheimer’s Disease or another form of dementia?

Cash Flow

• Do you have social security and if so, do you know your monthly income?

• Do you have a pension and if so, do you know your benefit income?

• Do you understand social security and pension survivor benefits?

• Do you know the direct and indirect costs of your health insurance?

• Are you saving to cover for emergency healthcare costs?

• Do you understand what Medicare will and will not pay for?

• Do you understand the three qualification areas to apply for Medicaid financial assistance?

• Do you know how your monthly income will change if one spouse dies?

Taxes

• Do you know the kinds of expenses that could be considered deductible when faced with a chronic illness?

• Have you consulted with your tax preparer to optimize deductions relating to increased healthcare costs for this year?

• Do you know how the SECURE Act affects your retirement?

Financial Institutions 

• Do you work with a financial professional? 

• Do you know when to change your investment strategy (cash, CDs, bonds, stocks, etc.) based on an increase in healthcare costs?

• Have you considered if it still makes sense to have accounts at multiple financial institutions versus simplifying or consolidating?

• Can family members access and understand your accounts to help when needed? 

Long Term Care Insurance 

(LTCI) Contracts

• Do you understand what your LTCI policy will and will not pay for?

• Do you know if your policy has a maximum payout?

• Do you know your options if asked to pay a higher premium?

• Do you know the criteria for submitting a claim?

• Are you aware of the actual cost of care compared to your LTCI reimbursement amount?

Planning Where to Live

• Do you plan to stay in the same area, move closer to family, or move to warmer weather? 

• If you want to age in place in your home, have you had your home assessed by a healthcare professional for livability?

• If you are planning to work with an agency to provide help in the home, have you researched the hourly/daily fee?

• If you are considering moving to a retirement community, do you have an idea of the services offered and pricing models?

• Are you or your loved one in need of 24-hour care? 

• Are you familiar with all of the senior housing options?

Finish 

If the answer is yes to all of these questions, welcome to a financially feasible retirement.

If the answer is no to some of these questions, then start planning now: lifecareaffordability.com