If you’re getting close to retirement, you’ll have several financial issues to consider.
But you’ll want to pay special attention to one of the most important of these: health-care costs.
What should you do to prepare yourself for these expenses?
Here’s one key move: Don’t overestimate the amount that Medicare will pay for your various medical expenses, as Medicare doesn’t cover everything.
Between copays, deductibles and coinsurance, you’ll face out-of-pocket costs.
Plus, you may need to add a supplemental policy, known as Medigap.
Ultimately, you may need to budget between $4,500 to $6,500 per year for traditional medical expenses in retirement.
But you should also be aware that Medicare typically pays very little of what may be the largest health care expense - long-term care.
A private room in a nursing home can cost more than $100,000 per year, according to Genworth, an insurance company.