Help with healthcare planning

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Topic Author
wish_to_retire
Posts: 41
Joined: Fri Jun 25, 2021 9:52 am

Help with healthcare planning

Post by wish_to_retire »

Hello,

I'm looking for some help with planning for our healthcare expenses post retirement and wanted to get a sense of how to go about it from the more experienced people here.

Age : 45 and spouse 42
Current NW = 2.2M (including RE)
Debt = 0
Current Income = 150k (US citizen located outside US for now)
Plan = hope to be back in US early/mid 50s

Current Healthcare
Life Insurance =500k through employer
Spouse Life Insurance = 250k through employer
Life insurance [personal] = 100k
HSA = 20k

Life insurance is not related to healthcare as such but I'm categorizing it over there. Questions I had:
1. How do people plan for paying premiums when they retire and how should I budget it and how much would it cost.
2. Do I need LTC - long term health insurance ?
3. How should we plan with Medicare ?
4. I'm also bothered that my life insurance is tied to my employer (and trying to correct it now)
5. Anything else?

I'm slightly confused by these and looking for a playbook 😀

Thanks.
BarbBrooklyn
Posts: 1717
Joined: Fri Aug 24, 2018 9:33 am
Location: NYC

Re: Help with healthcare planning

Post by BarbBrooklyn »

wish_to_retire wrote: Thu Oct 21, 2021 9:48 pm Hello,

I'm looking for some help with planning for our healthcare expenses post retirement and wanted to get a sense of how to go about it from the more experienced people here.

Age : 45 and spouse 42
Current NW = 2.2M (including RE)
Debt = 0
Current Income = 150k (US citizen located outside US for now) Are SS/Medicare being withheld?
Plan = hope to be back in US early/mid 50s

Current Healthcare
Life Insurance =500k through employer
Spouse Life Insurance = 250k through employer
Life insurance [personal] = 100k
HSA = 20k

Life insurance is not related to healthcare as such but I'm categorizing it over there. Questions I had:
1. How do people plan for paying premiums when they retire and how should I budget it and how much would it cost. You need to investigate ACA plans and see what might be available in the location you'll be coming back to.
2. Do I need LTC - long term health insurance ? LTC is Long Term CARE, not health, insurance. It pays for facility or at home care when you can no longer live without assistance.
3. How should we plan with Medicare ? Will you be eligible? If you are, you will get hold of a copy of Medicare for Dummies and go from there. Medicare starts at b 65.
4. I'm also bothered that my life insurance is tied to my employer (and trying to correct it now) You need Life Insurance if you are needing to leaves a means of support for your loved ones. Imo, once your children are out of college and launched, and you havecenough assets to leave spouse. You no longer need LI.
5. Anything else?

I'm slightly confused by these and looking for a playbook 😀

Thanks.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
Topic Author
wish_to_retire
Posts: 41
Joined: Fri Jun 25, 2021 9:52 am

Re: Help with healthcare planning

Post by wish_to_retire »

Thanks..

No SS and Medicare tax withheld in my current employment. But based on my past work in US I should be eligible since I was on the payroll for 20 years. My SS benefits is at 2560$ now.

Thanks for the tips on ACA and dummies book.

Do folks plan on LTC as well ?

BarbBrooklyn wrote: Fri Oct 22, 2021 4:08 am
wish_to_retire wrote: Thu Oct 21, 2021 9:48 pm Hello,

I'm looking for some help with planning for our healthcare expenses post retirement and wanted to get a sense of how to go about it from the more experienced people here.

Age : 45 and spouse 42
Current NW = 2.2M (including RE)
Debt = 0
Current Income = 150k (US citizen located outside US for now) Are SS/Medicare being withheld?
Plan = hope to be back in US early/mid 50s

Current Healthcare
Life Insurance =500k through employer
Spouse Life Insurance = 250k through employer
Life insurance [personal] = 100k
HSA = 20k

Life insurance is not related to healthcare as such but I'm categorizing it over there. Questions I had:
1. How do people plan for paying premiums when they retire and how should I budget it and how much would it cost. You need to investigate ACA plans and see what might be available in the location you'll be coming back to.
2. Do I need LTC - long term health insurance ? LTC is Long Term CARE, not health, insurance. It pays for facility or at home care when you can no longer live without assistance.
3. How should we plan with Medicare ? Will you be eligible? If you are, you will get hold of a copy of Medicare for Dummies and go from there. Medicare starts at b 65.
4. I'm also bothered that my life insurance is tied to my employer (and trying to correct it now) You need Life Insurance if you are needing to leaves a means of support for your loved ones. Imo, once your children are out of college and launched, and you havecenough assets to leave spouse. You no longer need LI.
5. Anything else?

I'm slightly confused by these and looking for a playbook 😀

Thanks.
User avatar
JoeRetire
Posts: 15381
Joined: Tue Jan 16, 2018 1:44 pm

Re: Help with healthcare planning

Post by JoeRetire »

wish_to_retire wrote: Fri Oct 22, 2021 4:29 am Do folks plan on LTC as well ?
Some do.
Look through this board and you'll find plenty of discussion as to why you should and why you shouldn't.
This isn't just my wallet. It's an organizer, a memory and an old friend.
User avatar
mhc
Posts: 5257
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Help with healthcare planning

Post by mhc »

wish_to_retire wrote: Thu Oct 21, 2021 9:48 pm
Life insurance is not related to healthcare as such but I'm categorizing it over there. Questions I had:
1. How do people plan for paying premiums when they retire and how should I budget it and how much would it cost.
If you do not have employor subsidised retirement insurance, look at the ACA exchange for where you will live. Try out different ages and income levels to see how that affects premiums. Plans very greatly by location.
2. Do I need LTC - long term health insurance ?
I have concluded no LTC for me. Maybe that will change in 20 years. Just keep an eye on it to see if anything changes.
3. How should we plan with Medicare ?
Use it. Too many things can change between now and then to spend too much time on this topic. Realize that it still costs money.
4. I'm also bothered that my life insurance is tied to my employer (and trying to correct it now)
Once you are FI, life insurance is not needed.
5. Anything else?
I hopefully will retire next year, so I have been looking at these topics.
52% TSM, 23% TISM, 24.5% TBM, 0.5% cash
delamer
Posts: 17453
Joined: Tue Feb 08, 2011 5:13 pm

Re: Help with healthcare planning

Post by delamer »

Medicare is available to each of when you turn 65. The fact that you’ve turned 65 won’t make your spouse eligible.

Part A will be free. Parts B & D will require a monthly premium. Here’s a summary: https://www.medicare.gov/basics/get-sta ... are-basics

If you have to purchase unsubsidized ACA health insurance, before you become Medicare-eligible, it could be as much $20,000 - $25,000 per year to cover you both (in today’s prices).

Long-term care insurance is pretty expensive and provides limited coverage (usually just for 3 to 5 years, with a maximum daily benefit). The joint federal/state Medicaid program is designed to make sure seniors can get that type of care if needed, but you have to limited assets to be eligible. And, as a general rule, you’ll get higher quality care if you can pay for it yourself.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
User avatar
Eagle33
Posts: 2391
Joined: Wed Aug 30, 2017 3:20 pm

Re: Help with healthcare planning

Post by Eagle33 »

Regarding LTC, here is a recent article by Christine Benz on the topic.
An Action Plan for Long-Term Care
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