Save Money on Health Care Costs
Once you have started working on your Financial Plan and Health Insurance Plan, it’s time to focus on your “Preventive Savings Plan” to save money on health care costs in retirement.
Health care is often the #1 cost for retirees. According to a study done by Fidelity, not including Long Term Care, American couples will need about $285,000 saved (in today’s dollars) to cover health care costs in retirement. That is a lot of money!
What can we do about this? One proactive approach to saving money is to stay as healthy as possible. We call this “Preventive Savings,” and it can really add up!
What is Preventive Savings? It is a mindset, and a plan, to live in such a way to prevent, as best as you can, negative events (such as medical events, chronic illnesses, or out of hand expenditures) that will hit your wallet hard.
I am not referring to preventive care medical appointments (although, those are important too). Rather, I am referring to what you can do individually to save the most money on your medical costs and lifestyle costs in retirement.
These are things you can do both while preparing for retirement and while in retirement. It’s never too late or too early to start.
The Key Elements to Help You Save Money on Health Care Costs
Medical Costs and Preventive Savings
Now, there are many small ways to keep yourself healthy day-to-day. However, we are concerned with the biggest medical problem created by our lifestyles. This is the problem we must address to save thousands of dollars down the road:
The #1 Problem: Metabolic Diseases and Chronic Illnesses
You can stuff as much money as possible into your pockets now, but it will fall right back out with the huge hole chronic diseases create. Some people think there is nothing they can do about, but YOU ARE NOT HELPLESS IN REGARDS TO ILLNESS.
This is your wake up call! If you are planning on living a while, it’s time to assess your lifestyle and what you are putting into your body.
Lifestyle Costs and Preventive Savings
In addition to medical costs, there are lifestyle pitfalls that can put a damper on your happy retirement and drain your bank account. Some of these are better to plan for before retirement, but most of these problems can be solved anytime.
- Spending too much on your big expenditures.
- Having too few sources of income in retirement.
- Not having a purpose / happiness plan in retirement.
- Missing a strong social network.
Simple Life, Simple Savings
“The Good Life” is often “The Simple Life,” full of friends, family and connection. Getting back to the basics of what makes us healthy and happy is not just good for our souls, but good for our savings.
Start with your health and then move on to your lifestyle. I promise this integral part of your path will create just as much wealth for you as your financial/insurance plan.