How to Protect Your Health and Wealth

At Iowa Retirement Benefits & Solutions, healthcare comes up in nearly every retirement conversation—and for good reason. Planning for healthcare costs in retirement isn’t just smart-it’s essential.

Healthcare is one of the most underestimated (and expensive) parts of retirement. And without a solid plan in place, unexpected medical bills can quickly derail even the best financial strategies. That’s why understanding the pillars of healthcare retirement planning is critical to protecting your income, your assets, and your peace of mind.

Below, we walk through the key areas every retiree (or soon-to-be retiree) should address:

Estimate Your Retirement Healthcare Costs

Start by taking an honest look at your future healthcare expenses:

• Plan for Rising Costs: Healthcare inflation often outpaces general inflation. That means today’s premiums, copays, and prescription drug costs will likely be much higher down the road.

• Don’t Forget Long-Term Care: Medicare doesn’t cover most long-term care needs. Services like assisted living, in-home care, or nursing facilities can cost thousands per month and should be part of your budget.

Understand Your Retirement Insurance Options

Choosing the right healthcare coverage is foundational to any retirement plan:

• Medicare Basics: Know what each part of Medicare covers—Parts A, B, C, and D—and what your out-of-pocket costs might be.

• Medigap and Medicare Advantage: Consider supplemental insurance to help cover gaps in Original Medicare. Medigap policies or Medicare Advantage plans may help reduce unexpected costs.

• Long-Term Care Insurance: Explore whether LTC insurance makes sense based on your age, health, and financial goals.

Save and Invest for Healthcare in Retirement

You can’t predict every future medical expense, but you can prepare:

• Health Savings Accounts (HSAs): If you’re still working and enrolled in a high-deductible health plan, max out your HSA. These accounts come with a triple tax advantage—tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses (including Medicare premiums!).

• Traditional Retirement Accounts: 401(k)s, IRAs, and Roth accounts can all be used to help cover out-of-pocket healthcare costs in retirement.

Be Strategic With Income and Taxes

What you earn—and how you withdraw it—can affect your healthcare costs:

• Watch Your MAGI: Your Modified Adjusted Gross Income determines your Medicare Part B and D premiums. Earning too much can trigger IRMAA (Income-Related Monthly Adjustment Amount) surcharges.

• Plan Withdrawals Wisely: A smart withdrawal strategy can reduce taxes and keep your Medicare premiums in check.

Don’t Forget Early Retirement Healthcare Planning

Retiring before age 65? You’ll need coverage until Medicare kicks in:

• Bridge the Gap: Options may include COBRA, your spouse’s employer plan, ACA marketplace coverage, or private health insurance.

• Budget Carefully: These costs can be significant, so make sure your retirement plan accounts for this transitional phase.

Review and Adjust as You Go

Healthcare needs aren’t static. Your plan shouldn’t be either:

• Annual Checkups (for Your Finances): Reevaluate your healthcare plan regularly, especially if your income, health status, or insurance needs change.

• Stay Proactive: Adjust your strategy as life evolves to ensure continued coverage without compromising your retirement goals.

Secure Your Retirement Health Plan Today

Planning for healthcare in retirement isn’t just about numbers—it’s about peace of mind. The team at Iowa Retirement Benefits & Solutions is here to guide you through Medicare choices, long-term care planning, tax-smart withdrawal strategies, and more.

Let’s build your personalized healthcare retirement plan—together.

Schedule Your Free Financial Strategy Session

Email us at info@iowaretirementsolutions.com
Call us at 319-423-3332
Click here to schedule your free consultation.

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.