5 Simple Ways to Manage Your Healthcare Costs in Retirement

Healthcare can be one of the biggest expenses for retirement as medical issues creep up. Unfortunately, too many of us fail to effectively budget for medical expenses in retirement. This is mainly because many of them were covered by our employers.

As healthcare costs continue to rise, it is necessary for everyone to plan to pay for some of them in retirement. Moreover, age-related issues can eat into savings, which can cause worry about dealing with these costs in retirement.

While there is no way to avoid these costs altogether, there are ways to manage the situation. Start by following the tips provided by our leading senior retirement living facility in Niagara Falls.

Let’s get started.

How to Manage Your Medical Expenses After You Retire

Healthcare expenses in retirement can be unexpected and unwelcome. Our assisted living specialists in Niagara Falls suggest following these tips.

1. Cover Health Care Costs With Health Insurance

Getting a suitable health insurance plan is key to managing health care costs in retirement. By finding the right plan at the right time, it will be enough to cover major costs. This way, you won’t have to worry about saving a large chunk of your pension for health care. The best way to choose the right insurance plan is to:

Consider how large the insurer’s network of hospitals is. You can get cashless treatment if you choose to get treated at a network hospital.
Choose an insurance plan that provides a high amount of coverage or health benefits and the maximum possible sum assured by your plan. Keep in mind that some insurers provide both.
Find out about conditions such as entry and renewal age. Ideally, the entry age should be between 60 and 80 years, allowing you to purchase a plan later if required. The renewal age is the maximum age until when you can renew your plan. Our senior retirement living community suggests picking an insurer that provides the highest renewal age.

2. Visit Your Doctor Regularly

Physicians encourage patients to lead an active and healthy lifestyle to avoid having to deal with mounting medical bills. This is especially true for seniors without a source of income. Older Canadians should take charge of their medical care and visit their doctor regularly. This way, they can identify health issues early and prescribe necessary treatments that can go a long way towards reducing their expenses over time.

You should also have a good dentist and see them every six months to ensure your oral health is in top shape.

3. Identify Smaller Expenses

An easy way to manage healthcare costs in retirement is to break them into small portions, if possible, like monthly requirements.

Also, make a list of your medications and how frequently you use them.

Additionally, you should get full body checkups at least twice a year and maintain a log of results. Even maintaining a simple file can prove helpful in emergencies, as doctors can use it as a reference for your current health condition.

4. Know What the Government Covers

In Canada, government healthcare plans vary by province. However, most don’t cover:

Contact lenses or glasses
Paramedical services such as physiotherapy, massage therapy, and chiropractic care, among others
Dental services

In Ontario:

Adults don’t qualify for the Ontario Drug Benefit Program until they reach 65 (unless they are on social assistance). Co-payments and deductibles may be applicable).
Seniors in the lower-income group only need to pay $2 per filled prescription, without any deductibles. This includes couples with an annual income under $32,300 and singles with an annual income under $19,300.

5. Factor in the Rising Cost of Care

In reality, the cost of care tends to go up as our abilities and health begin to decline. Too many Canadians mistakenly believe that long-term facilities provide full-time care, or that they are fully covered by the government. And while some Canadians may be eligible for a subsidy, many won’t be based on their income.

There is something you can do about it – and that is long-term care insurance. This pays income-style benefits when an individual cannot perform the activities of daily living or take proper care of themselves due to age, severe illness, a serious accident, or deteriorating mental abilities. This includes requiring:

Physical assistance for at least two activities daily.
Constant supervision as a result of deterioration in mental abilities.

Of course, you can always put your expenses in different categories and start putting money away now. Healthcare should be a priority, as much as basic living and retirement expenses. The experts at our senior retirement living facility recommend dropping some wants and wishes while also considering an alternative should you not be able to pay your hospital bills. While it may be tough, it is best to start saving for healthcare needs in retirement as early as possible (or before, if you are just starting to look at retirement). By getting in front of this situation before you retire, you will be able to do some catch-up and adjust where required.