To rally the cause of 50- and 60-somethings, and to give younger workers a heads-up on long-term medical care costs, Ameriprise Advisor Group (AMP - Get Report) has some tips and strategies that can help mitigate health care payout risks in retirement. Plan for the "what-ifs." According to data from EBRI, nearly three in 10 retirees (28%) are doubtful they would be able to come up with $2,000 for an unexpected need. Reducing your debt and saving as much as you are able before you retire is the simplest way to prepare for any unanticipated expenses -- medical or otherwise -- in (or before) retirement. Be realistic. Many boomers aim to retire before the traditional retirement age, but one of the biggest challenges in retiring early is paying for health care without insurance through an employer and before Medicare benefits kick in. There are several options to help bridge this gap, but a health crisis during these years can affect your retirement income long term, so determine how you will afford health care during this period well before you near your planned retirement age. Be proactive about your health. Begin by researching what Medicare covers and determine if a long-term care policy makes sense for your situation. Often, as retirees age, health risks become more real as they see siblings and friends experience medical crises; it's at this time they begin considering how they may be affected by similar issues. It's important to think about long-term care insurance many years before, though, when premiums may be more affordable and a person is more likely to qualify for coverage.Confidence about other financial aspects of retirement reached record lows in 2013, continuing the decline from highs recorded in 2007. In particular, increases are seen in the percentage of workers not at all confident about their ability to pay for basic expenses (16%, up from 12% in 2011 but statistically equivalent to 13% in 2012). Larger concerns were medical expenses (cited by 29%, up from 24% in 2012), and long-term care expenses (39%, up from 34% in 2012).
3 Tips to Ending Retirees' Long-Term Care Fears
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.