When we get repeat questions from different clients, we realize it is a hot topic for people. One topic that has been brought up a lot recently is Medicare.
Before we get into how it affects you, let's look at what has recently happened to Medicare premiums to understand the increase.
Medicare's premiums and deductibles have seen a larger-than-expected rise this year. For example, Medicare Part B monthly premiums have risen to $170.10, a 14.5% increase. In addition, the deductible for Part B rose to $233. The Part A deductible increased to $1,556.
You aren't alone if you didn't take advantage of the recent open enrollment period. According to a recent survey from MedicareGuide.com, 67% of beneficiaries hadn't looked at their choices by mid-November. At the same time, the Kaiser Family Foundation discovered that 71% don't review their options during the open enrollment period.
Is it essential to you?!?
Yes! One of the most important financial moves you can make is to have a written financial plan. When you construct your plan, you need a starting point. That starting point is the amount of money you need per month in retirement to live the retirement lifestyle you desire. Once you know that number, you can figure out what retirement will cost you.
When you look at your expenses in retirement, your health coverage is a big piece of it.
Whether the premiums, drug costs, or deductibles, it all needs to be accounted for in your retirement expense planning. When significant increases like this year, you must reflect that in your financial plan. We need to account for inflation; we need to pay attention to rising Medicare costs. Most of our clients share the same goal of not running out of money in retirement. To help them pursue that goal, we need all the information we can get regarding expenses.
How do you sign up?
As mentioned earlier, many people don't review their options during the open enrollment period. As a result, some people are confused about where to start, so we recommend working with a Medicare professional if you feel like you could benefit from some guidance. We also have a post on "how to apply for Medicare" when the time comes. Like everything in your financial plan, you should review it annually.
There is always so much going on in the headlines and social media that it can be hard to focus on what's important. But, for you, the most important thing you can worry about is how YOUR SITUATION has changed.
Regardless of the headline, whether it be COVID, war, recession, or bear market, always keep your goals at the forefront and make wise decisions based on that. When markets are volatile, it can be tough to do, but that is where you can lean on us to make sure you stay on task.
Schedule a discovery call with us to ensure you are on the right path. It could be one of the best financial decisions you make.