Equifax

Finance Blog

Six Tips for Reducing Healthcare Expenses in Retirement

Written by David Bakke on July 4, 2014 in Retirement  |   No comments

Even if you’ve done a great job saving up money for retirement, you may eventually face healthcare expenses that could quickly drain your savings. Fidelity estimates that a 65-year-old couple needs $220,000 for healthcare expenses in retirement, but the truth is that healthcare costs are…

six-tips-for-reducing-healthcare-expenses-in-retirementEven if you’ve done a great job saving up money for retirement, you may eventually face healthcare expenses that could quickly drain your savings.

Fidelity estimates that a 65-year-old couple needs $220,000 for healthcare expenses in retirement, but the truth is that healthcare costs are tough to quantify because you never know what issues you may face.

Fortunately, there are things you can do before and during retirement to help reduce your healthcare expenses and make your golden years more enjoyable:

1. Get in shape. This may seem like a no-brainer, but employing a healthy diet and exercising regularly go a long way toward reducing your healthcare expenses during retirement. Get involved with group activities at your local YMCA or community center, and don’t be afraid to take up a new sport. You could also create a home workout plan and get more exercise from the comfort of your living room.

2. Keep stress low. Stay in touch with friends and family, maintain a good mental attitude, and join groups in which you’re interested. Consider taking up yoga or meditation, or find solace at a place of worship. Mend any personal relationships that need fixing to further reduce stress.

3. Use mail-order prescriptions when available. Picking up prescriptions from the drug store is convenient, but if you plan ahead you can save money by purchasing them through various mail order programs. (Check with your insurance provider for details.) Some companies even give you a reminder call when it’s time to reorder. Not only is this cheaper than going to your local store but it also saves time.

4. Question some medical tests. Don’t go against the advice of your doctor, but be aware that for liability purposes, some doctors may order tests or screenings that aren’t necessary. For example, if you have no family history of heart disease and are generally in good health, an annual EKG may not be needed. Also, according to the University of Texas, almost one-quarter of colonoscopies conducted on people 70 and older may be unnecessary.

5. Reconsider vitamin supplements. Some vitamin supplements may help you achieve optimum health, but others can be a waste of money. Supplements are often expensive, so do your own research and ask for your doctor’s opinion on which of them you might need.

6. Research Medicare supplement plans. Medicare covers a lot, but it doesn’t cover everything. Consider investing in a Medicare supplemental insurance plan, also known as Medigap. There are many options, and they are generally tailored to individual needs. Again, take the time and do the research to avoid getting a plan with coverage you don’t need.

The healthier you are, the longer your nest egg needs to last. During retirement, make it a point to manage your assets even better than you did when you were working. Talk to a financial planner about how to increase the longevity of your investments. If you’re still bringing in an income, devote a portion of it to savings to make sure you’re covered.

What other ways can you think of to reduce healthcare expenses in retirement?

David Bakke writes about money management topics including insurance, retirement, investing, and credit.

No comments yet


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Retirement Archive

Stay Informed Sign up for our FREE Equifax email Newsletter