Page 84 - Workbook3E

Medical and Dental Expenses—How about Insurance?
There’s no denying it: Age sometimes brings with it higher and more catastrophic heath care costs. Some options are continuing with your
employer or utilizing various health care plans available through the government, the American Association of Retired Persons (AARP), insurance companies, and facilities like Health Maintenance Organizations (HMO).
The U.S. government has been examining various health care reform options. If any programs are developed by legislation, options for your retirement could be drastically altered. You need to keep track of legislation and laws affecting your retirement.
Medicare covers about 40% of health care expenses for retired persons. Supplemental health coverage may be available to you during retirement through your employer’s group health insurance or senior groups like AARP.
Other Types of Insurance
Even in retirement, you’re going to need insurance protection for your automobile, home, and personal property, as well as good health insurance.
Transportation—How Are You Going to Get Around?
Should you use private or public transportation when you retire? There are benefits to both. Compare the cost and commitment involved with owning a private automobile to the cost and convenience of public transportation. You may not always be able to drive yourself.
Food, Clothing, and Personal Items
It’s likely you’ll be living on a fixed income during retirement. You’ll need to be careful in your expenses for food, clothing, and personal items. You can use frugal practices like discount coupons, generic brand products, shopping sales, and buying in bulk.
Julie could smell a clearance rack from a mile away. She could make calculations at the speed of light, figuring out 15%, 30%, or 50% off of any price. She had an uncanny ability to stop at the right store, at the right time, with exactly the right coupons. The challenge to get the best possible deal was exhilarating and fun!
When her husband retired, Julie didn’t have to make a major change in her spending habits, so the transition was easier. Their spending plan was a little tighter, but she had always spent carefully. She purchased the products she liked, but was smart enough to buy them at the best price she could find. A life of good financial habits pays off.
80 Workbook 3: Prepare for the Future