Planning for retirement is often an exciting part of life. You’ve probably spent time thinking about the budget for your home, travel plans, and all of the hobbies you’re going to have time for. But have you considered how much you’re going to spend on health care?
Making a financial plan that includes health care costs is an important part of the retirement planning process. Use this checklist to learn about what types of health care costs you should expect, how you can start preparing, and why it matters for your future.
Your essential retirement health care checklist
Sometimes, having a guide or worksheet can be a helpful way to kickstart the planning process. Use this checklist to start thinking more about health care costs in retirement and take notes as you work through them. Bonus tip: save or print this list so you can easily track what you have completed.
| Checklist item | What to do | Why it matters |
|---|---|---|
| Review your current health care needs | Have a conversation with your doctor. Talk about your current health and your family history. Write down any conditions that you have and the medication that you use. | This information could help you think about how much you pay now so you can set a baseline for your budget. |
| Estimate future health care expenses | Look at your finances and make a note of how much you spend on health care now. Use tools and guides to help you estimate your future spending. | This information could help you make an educated guess about how much money you’ll need to set aside for future costs. |
| Learn the basics of medicare | Learn about your Medicare plan options including what each part covers: Part A and Part B (Original Medicare), Part C (Advantage plans), Part D (drugs). | These details could help you pick the plan that is right for your needs so you can get as much coverage as possible. |
| Secure supplemental coverage (if needed) | Get the facts about Medicare Supplement insurance (also known as Medigap) and find out if you need extra insurance to cover what Medicare doesn't. | Supplemental insurance may help you find extra coverage and potentially save you even more than a standalone Medicare plan. |
| Plan for potential long-term care needs | Learn more about long-term care costs and research what types of care you should plan for. | The future can be uncertain, and it is helpful to learn more about what types of care and costs you should anticipate. |
| Understand prescription drug expenses | Review how much you’re spending on prescription drugs. Check to see if Medicare Part D or other plans can help cut costs. | This information may help you save money on prescription drugs and other medical supplies you need for your health care. |
| Leverage potential health care savings | Use health savings accounts (HSAs) if you can and learn more about how they work with Medicare. | An HSA may help you pay for health care with money you saved before taxes. |
| Make a legal plan for yourself | Make sure you have a health care proxy (someone who can make decisions on your behalf) or power of attorney depending on your health needs. | A proxy or power of attorney mayhelp make decisions about what type of care you need if you are unable to. |
| Finalize your retirement budget | Add up all of your current and future costs and create a health care budget that feels right for you. | A finished budget could help you know if you have saved enough money for health care. |
How this checklist benefits you
According to the U.S. Department of Labor, only 51 percent of American workers have taken the time to calculate how much money they will need for retirement. If you are a part of this group, we understand that the process may seem intimidating. Having a health care cost checklist could make it easier to organize your thoughts and may help you create a more realistic plan for your retirement budget. Taking the first step now could help you feel less stressed and overwhelmed in the years to come.
How UnitedHealthcare can support your retirement financial planning journey
If you need more resources to help you plan for a healthy and happy retirement, UnitedHealthcare is here to help. Take advantage of these helpful articles to learn more about health care costs and what you should prepare for as you near the age of Medicare enrollment.
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Medicare Made Clear brought to you by UnitedHealthcare provides Medicare education so you can make informed decisions about your health and Medicare coverage.