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Many seniors find that their expenses go down once they retire. But there’s one exception to that rule — healthcare.
Healthcare is the one cost that tends to rise during retirement, and often, seniors find themselves unprepared for it. To avoid that fate, here are a few points you should keep in mind about healthcare in retirement in the course of your financial planning.
1. Medicare doesn’t start until age 65
Since Social Security eligibility begins at age 62, many people aim to retire at that point. Medicare, however, doesn’t kick in until age 65, so if you’re planning to leave the workforce on the early side, you’ll need a plan for healthcare, whether it’s retaining your employer plan through COBRA (which only works for up to 18 months) or buying a marketplace plan.
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2. Medicare doesn’t cover everything
Some seniors are shocked to learn that Medicare won’t pay for a host of common expenses. These include dental care, vision exams, eyeglasses, and hearing aids. Furthermore, Medicare won’t pick up the tab for long-term care, so if you wind up in an assisted-living facility or nursing home, that expense is solely on you.
Read up on what Medicare will and won’t cover …
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