wooden blocks spelling "health" and "wealth" to represent the cost of health insurance

Understanding Health Insurance When you Retire

The key to a comfortable and successful retirement is ensuring financial stability and reducing expenses through smart financial planning. If you’ve met with our Dallas or Fort Worth financial advisors, then you're likely already making wise investments, but don’t overlook the importance of planning for health insurance expenses. Health insurance after retirement works differently than when you are employed, so it’s important to familiarize yourself with your options and their potential impact on your Dallas retirement planning and Fort Worth retirement planning. Our independent financial advisors are here to explain how health insurance works when you retire.

Health Insurance Options to Consider When Planning for Retirement

Some companies offer health insurance upon retirement, but with rising costs for many employers, an increasing number do not. If you are fortunate enough to work for a company that offers retirement health insurance coverage options, review those available policies closely, as many are limited enough to require supplemental health insurance coverage. The responsible approach is to include this expense when planning for retirement. Our Retire Guides financial planner recommend their clients consider the following options:

  • Medicare: Medicare is a federally-sponsored health insurance coverage for those who are over 65 and meet the program requirements. There are a number of options available under Medicare, including Part A, which covers hospital costs, and Part B, which covers doctors visits. There is also a Medicare Part C option, which combines the coverage offered by Part A and Part B. Since none of the above offer prescription drug coverage, there is also a Medicare Part D option, which can be added to the aforementioned plans or purchased separately to cover the cost of prescribed medications.
  • Private Health Insurance: If you retire before the age of 65 or desire more coverage than Medicare can provide, private health insurance will need to be a part of your retirement planning. There are a plethora of options available on the federally-managed Health Insurance Marketplace or through an independent health insurance broker. The best plan for you depends largely upon your healthcare needs and budget. It’s best to look over the current cost of premiums for the plans that interest you and use them as a rough guide for your future health insurance expenses. While it’s impossible to know exactly how much your monthly premiums will be in the future, our Dallas financial advisors can provide you with an understanding of the market’s fluctuations and how it may impact your goals when planning for retirement.

Ask Our Independent Financial Advisors About Saving For Health Insurance Upon Retirement

There are many things to consider when planning for retirement, and our Dallas financial advisors and Fort Worth financial advisors have the expertise to help you make sense of your options and guide you to make the right choices for your goals and needs. If you’d like to sit down and discuss how to best plan for health insurance costs when you retire, schedule an appointment with us today. We look forward to working with you and providing you with the tools you need to retire in comfort.