{"id":102,"date":"2025-06-23T23:36:13","date_gmt":"2025-06-23T23:36:13","guid":{"rendered":"https:\/\/whiteoakwealtherie.com\/ideas\/?p=102"},"modified":"2025-07-02T15:08:19","modified_gmt":"2025-07-02T15:08:19","slug":"am-i-prepared-for-medical-expenses-in-retirement","status":"publish","type":"post","link":"https:\/\/whiteoakwealtherie.com\/ideas\/am-i-prepared-for-medical-expenses-in-retirement\/","title":{"rendered":"Am I Prepared for Medical Expenses in Retirement?"},"content":{"rendered":"<p><i><span style=\"font-weight: 400\">By Michael Nedreski<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400\">Medical expenses in <\/span><span style=\"font-weight: 400\">retirement<\/span><span style=\"font-weight: 400\"> are often one of the largest\u2014and most overlooked\u2014costs you\u2019ll encounter once you retire.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Fidelity estimates that a 65-year-old retiring today will face <\/span><a href=\"https:\/\/www.fidelity.com\/viewpoints\/personal-finance\/plan-for-rising-health-care-costs\"><span style=\"font-weight: 400\">approximately $165,000<\/span><\/a><span style=\"font-weight: 400\"> in healthcare costs, and that number doubles for couples, reaching around $330,000.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, the sooner you begin planning, the more effectively you can manage these costs without depleting your retirement savings.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This guide explores what to expect in terms of medical expenses in retirement, the factors driving those costs, and steps you can take now to create a plan that supports your health and well-being in the years ahead.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Understanding Medical Expenses in Retirement<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Medicare premiums are the first thing you might have to budget for. You\u2019ll pay monthly for:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Part A: <\/b><span style=\"font-weight: 400\">Covers hospital stays, skilled nursing care, and some home health services<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Part B: <\/b><span style=\"font-weight: 400\">Covers doctor visits, outpatient care, preventive services, and lab work<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Part D: <\/b><span style=\"font-weight: 400\">Helps with prescription drugs, but you\u2019ll need to enroll through a private plan<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Then there are out-of-pocket expenses like co-pays, deductibles, and the cost of medications that aren\u2019t fully covered. The problem is that these expenses can add up fast, even if you have decent coverage. And because they\u2019re ongoing, they can quietly reduce your retirement budget over time.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Funding Strategies for Medical Expenses in Retirement<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Below are some approaches you need to consider for your healthcare costs.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Health Savings Accounts<\/span><\/h3>\n<p><span style=\"font-weight: 400\">If you\u2019re still working and have a high-deductible health plan, getting a health savings account (HSA) might be a smart move. This is because it allows you to:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Save tax-free: <\/b><span style=\"font-weight: 400\">Contributions can lower your taxable income, growth typically isn\u2019t taxed, and withdrawals for medical costs are penalty-free.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Invest for growth:<\/b><span style=\"font-weight: 400\"> Unlike FSAs (flexible spending accounts), unused HSA funds often roll over yearly. You can let them grow for decades.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Cover gaps:<\/b><span style=\"font-weight: 400\"> After age 65, you can use HSA money tax-free for Medicare premiums (except Part A), dental work, or even long-term care.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">If you can afford to pay your current medical expenses out of pocket, letting your HSA grow untouched can be a great way to create a strong healthcare fund for retirement.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Planning for Long-Term Care<\/span><\/h3>\n<p><span style=\"font-weight: 400\">Long-term care can wipe out a retirement budget quickly if you\u2019re not prepared.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Total long-term care costs can be significant and vary widely based on the type of care, the setting in which it&#8217;s provided, and your location. For instance, the national average for a semi-private room in a nursing home is <\/span><a href=\"https:\/\/www.ltcfeds.gov\/long-term-care\/costs\"><span style=\"font-weight: 400\">approximately $100,740 per year<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A few strategies recommended by financial advisors include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Long-term care insurance: <\/b><span style=\"font-weight: 400\">Buying before age 60 lowers premiums, and policies often cover home aides, assisted living, or nursing homes.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Hybrid <\/b><a href=\"https:\/\/whiteoakwealtherie.com\/ideas\/life-insurance-month-plan-ahead-for-you-and-your-family\/\"><b>life insurance<\/b><\/a><b>:<\/b><span style=\"font-weight: 400\"> This combines a death benefit with long-term care coverage, meaning there\u2019s no \u201cuse it or lose it\u201d risk.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Self-fund: <\/b><span style=\"font-weight: 400\">Save aggressively or use home equity via a reverse mortgage.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/whiteoakwealtherie.com\/ideas\/navigating-market-volatility-in-retirement\/\"><span style=\"font-weight: 400\">Planning ahead<\/span><\/a><span style=\"font-weight: 400\">, whether through insurance or savings, is one of the best approaches for shielding your retirement from the high cost of long-term care and medical expenses in retirement.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Roth IRAs and Tax-Savvy Withdrawals<\/span><\/h3>\n<p><span style=\"font-weight: 400\">Roth IRAs* can be a great way to manage medical expenses in retirement, largely because qualified withdrawals don\u2019t count toward your adjusted gross income. This means you can avoid triggering Medicare premium surcharges and may get the care you need without paying more than you have to.<\/span><\/p>\n<p><i><span style=\"font-weight: 400\">*A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59\u00bd or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.\u00a0<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400\">Start Today to Plan for Medical Expenses in Retirement<\/span><\/h2>\n<p><span style=\"font-weight: 400\">With thoughtful planning, you can manage significant medical expenses in retirement without depleting your savings. With long-term care costs projected to continue rising, delaying preparation is not an option. The earlier you start, the more strategies you\u2019ll have to safeguard your nest egg.<\/span><\/p>\n<p><span style=\"font-weight: 400\">At <\/span><a href=\"https:\/\/whiteoakwealtherie.com\/\"><span style=\"font-weight: 400\">White Oak Wealth Partners<\/span><\/a><span style=\"font-weight: 400\">, we design customized, fulfilling retirement plans for your future. Let us guide you in creating a strategy that accounts for healthcare costs while shielding your legacy. To get started, contact us by calling 814-835-4551, emailing <\/span><a href=\"mailto:MICHAEL.NEDRESKI@LPL.COM\"><span style=\"font-weight: 400\">MICHAEL.NEDRESKI@LPL.COM<\/span><\/a><span style=\"font-weight: 400\">, or <\/span><a href=\"https:\/\/www.whiteoakwealtherie.com\/contact.php\"><span style=\"font-weight: 400\">scheduling an appointment here<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13\" src=\"https:\/\/whiteoakwealtherie.com\/ideas\/wp-content\/uploads\/2024\/12\/WOW-Michael-headshot-circle.png\" alt=\"\" width=\"150\" height=\"150\" \/><\/h3>\n<h3><span style=\"font-weight: 400\">About Michael<\/span><\/h3>\n<p><a href=\"https:\/\/www.whiteoakwealtherie.com\/about.php\"><span style=\"font-weight: 400\">Michael Nedreski<\/span><\/a><span style=\"font-weight: 400\"> is managing partner at White Oak Wealth Partners, a specialized financial lifestyle and wealth management firm serving entrepreneurs, business owners, executives, and their families. Mike has 30-plus years of experience in the financial services industry and is committed to serving his clients through holistic financial planning, disciplined investment strategies, and proactive personal service.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">A native of Erie, Pennsylvania, Mike began his career in the financial services industry in 1988. He has earned the Chartered Retirement Planning Counselor<\/span><span style=\"font-weight: 400\">SM<\/span><span style=\"font-weight: 400\"> (CRPC\u00ae) designation conferred by College for Financial Planning (188-LPL). Mike is also an active member of the Financial Services Institute (FSI) and Financial Planning Association (FPA).<\/span><\/p>\n<p><span style=\"font-weight: 400\">When not working, Mike enjoys spending time with his wife, Amy, and their children. He volunteers in his community and at his church and his children\u2019s schools. An outdoors enthusiast, Mike loves hunting, fishing, golfing, and spending time near or on the water. He also enjoys working out and watching some of his favorite sports teams, the Pittsburgh Pirates and the Cleveland Browns. To learn more about Michael, connect with him on <\/span><a href=\"https:\/\/www.linkedin.com\/in\/michaelnedreski\/\"><span style=\"font-weight: 400\">LinkedIn<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Michael Nedreski Medical expenses in retirement are often one of the largest\u2014and most overlooked\u2014costs you\u2019ll encounter once you retire. Fidelity estimates that a 65-year-old [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/comments?post=102"}],"version-history":[{"count":6,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/102\/revisions"}],"predecessor-version":[{"id":114,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/102\/revisions\/114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/media\/109"}],"wp:attachment":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/media?parent=102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/categories?post=102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/tags?post=102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}