A new survey finds that health care costs are driving retirees with Medicare back to work. Yes, Medicare may offer some of the best health care coverage in the US, but it still leaves enrollees with high out-of-pocket costs.
One in seven older adults have gone back to work in order to pay their health care bills. Medical costs can be substantial, even with Medicare. Medicare typically only covers about half of a person’s health care costs. It has deductibles, coinsurance and does not cover dental, vision, hearing or long-term care services.
Many older adults rely on Social Security as their sole or principal source of income. They can no longer depend on defined benefit plans are pensions. Consequently, some older adults have taken part-time jobs and others full-time jobs.
Motley Fool advises that, to protect yourself, you should set aside funds to cover your healthcare costs in retirement before you retire. Understandably, given the high cost of living and typically low salaries, it is hard to make ends meet as a working person, let alone save. But, if you can put some money aside for retirement, you should consider an IRA or 401(k) plan.
Money you put into an IRA or 401(k) plan is tax-free at the time you save it, as is money you put in a health savings account. And, if you’re lucky, the money will grow tax-free. You could easily need it in retirement.The latest Fidelity projection is that a 65-year old newly retired couple will need $300,000 to cover their health care costs this year. One way to maximize your savings is to delay taking Social Security benefits. You receive larger Social Security benefits if you do not enroll in Social Security until after your full retirement age. Click here for more information.
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