# Post-Retirement Healthcare Costs: Guide By TruNorth Advisors

Retirement is a highly anticipated phase of everyone’s life because with it comes the freedom to make your own choices without having to worry about going to work the next day. Which is why most people start saving up as early as they begin their career. [**TruNorth Advisors**](https://retiretrunorth.com) suggest that a lot changes post-retirement, which includes your lifestyle, daily routine, hobbies, finance management, social networks, and most of all, your healthcare requirements and their costs.


The cost of healthcare increases greatly when you are nearing retirement but given the planning and strategy, you can be ready to meet the cost way before it comes. Therefore, dividing these expenses by insurance, co-payments, over-the-counter drugs, and dental and vision services can provide you with a rough estimate regarding the amount of costs you will have to save and how.

So in this guide by TruNorth Advisors, let’s take a look at how your healthcare costs change after retiring and every medical costing factor you should plan for. Here, you will also learn about the claims and grants you can avail, as well as the reason for this drastic change in healthcare costs before and after retiring.

## How Do Healthcare Costs Change After Retiring?

During your working years, most employers grant their employees health insurance and cover costs for sudden medical expenses. However, this changes post retirement as you lose the employer-sponsored plans and coverage. This leads to more people opting for government subsidies, due to the higher costs and premiums required by private agencies. Below, you will understand how healthcare and medical costs evolve as you approach retirement:
**1. Lack of Employer Contributions and Schemes**
Most people lose their corporate health insurance privileges that come with many benefits that also help with out-of-pocket costs. TruNorth Advisors state that this increases the financial load of paying for medical appointments or treatments after you retire.
**2. Transition to Government Policies**
After losing the corporate insurance plans, most people make the switch to government health plans in the US. These plans do offer medical benefits, but often, fail to cover for all your medical expenses especially as you grow older.
**3. Higher-Premiums for Private Insurance**
For most private insurance companies, the premiums are extremely expensive as you age. They do offer supplemental ‘senior citizen’ policies that cover for vision, dental, or hearing aids. However, you will still have to pay out-of-pocket for other medical visits and treatments.
**4. Risk of Chronic Illnesses**
With aging comes the risk of developing chronic illnesses, and without a reliable medical plan, battling issues like diabetes, heart-related conditions, and arthritis can become increasingly difficult. These illnesses do not go away within a single appointment, and require a series of check-ups, treatments, and medications.
**5. Need for Long-Term Care and Prescription Medication**
Some people might need long-term care in the form of prescription medication or nursing homes, assisted living, and even in-home care that most government plans do not subsidize for. This might need you to set up a dedicated saving plan as these necessities are pricey and have to be paid for by you.

### How TruNorth Advisors Recommend You to Save for Post-Retirement Healthcare Costs

Despite the heavy costs and out-of-pocket expenses, there are several ways discussed below so you can plan for these medical costs mentioned above:

1. Opt for a Health Savings Account (HSA): HSA provides retirees a ‘triple tax advantage’ that offers tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualifying medical expenses.
1. Start Saving for a Healthcare Fund: While saving for your retirement, create a dedicated fund for healthcare and related costs. This will help you pay for out-of-pocket expenses and other costs that the insurance doesn’t cover.
1. Long Term Care (LTC) Insurance: LTC insurance will cover costs imposed by nursing homes, assisted living, in-home care, and other such costs. This will protect the rest of your savings and the premiums aren’t expensive when purchased at a young age.
1. Seek a Financial Advisor: Seeking a financial advisor such as [**Matt Dixon**](https://about.me/mattdixon) will help you navigate the possible costs and plan you can opt for to secure your health after retiring.

### Retirement Healthcare Planning with TruNorth Advisors

Retirement is a phase every employee looks forward to since it gives you the freedom of not having to work every single day. Planning ahead for your retirement is the best gift one can give themselves, because at that age, you shouldn't have to worry about making ends meet, but instead shift your focus towards what gives your joy and peace. TruNorth Advisors recommend you to specifically estimate and plan for medical expenses too as you save funds for your retirement, because these expenses will make up for a significant part of what you spend post-retirement. For most people, planning post-retirement healthcare costs is a bigger necessity as the health insurance that comes with your job might not cover your medical expenses after you retire. Thus, it is best if you start planning your resources for healthcare within your retirement plan.