It seems that all we hear on the news lately is “healthcare, healthcare, healthcare”. Every few weeks there is a new, alarming report on the rising cost of healthcare nationwide. Then, of course, we have politicians on Capitol Hill debating, deliberating, writing, and rewriting laws pertaining to health insurance. While it seems nearly impossible to get everyone to agree to a course of action, pretty much everyone agrees that healthcare is expensive and ever-increasing in cost.
That cost is likely to hit retirees the hardest, since we tend to develop more health problems as we age. Federal employees who retire before the age of Medicare eligibility enjoy the opportunity to choose from several healthcare plans, but you will still be responsible for medical bills before you reach your deductible. If you choose a low-premium, high-deductible plan, one large bill could put a major dent in your retirement income. Or, you might choose a low-deductible plan, but you’ll still be responsible for paying higher premiums and the cost of prescription medications.
In either scenario, you end up paying a lot for your healthcare expenses. There’s just no way around it.
So, with that in mind, it’s easy to see how planning for retirement involves some major consideration of the cost of healthcare. If you’re eligible to contribute to a Health Savings Account (HSA), it’s worth some serious thought. You can set aside pre-tax money to use for qualified healthcare expenses, and if you don’t use the money if your account each year, it can be rolled over – all the way into retirement!
When viewed that way, an HSA is actually another way to save for retirement. Someday you could use the funds (which won’t be taxed, by the way, so long as you use them for qualified expenses) for health insurance premiums, medications, co-pays, and more.
If you’re interested to learn more about how an HSA can help you save money now, and potentially provide a financial boost in retirement, give us a call. We can help you determine whether you’re eligible for this unique savings opportunity and answer any other questions you might have about retirement.
