Heath Risks that Can Derail Your Retirement

Frailty, Health and Long-Term Care Costs

Frailty

As retirees age, their mental and physical health will often begin to deteriorate. They may not be physically able to do their required tasks or mentally capable of making sound judgments. It’s important to have health directives and power-of-attorney documents drawn up and made public to the beneficiaries of the estate.

Health Care

Retirement may mean paying more for medical insurance (Medicare Parts B, D and Medicare Supplement policies) than during the working years. Even with insurance, some expenses will be paid out of pocket, especially if unexpected illnesses or medical problems arise. Many advisors feel the typical couple will spend more than $220,000 for Medicare premiums and medical expenses in their retirement.

Long-Term Care

Chronic diseases, such as Alzheimer’s, can restrict a person's ability to handle activities of daily living. This can require them to allocate financial resources for custodial and medical care or place a particular burden on the individual’s family member or spouse as a caregiver. It’s important to renovate your own home for assisted home living and align yourself with caregivers within—as well as outside—your family.

Elder Abuse

Family members, unscrupulous advisors or strangers might prey on older retirees with financial scams, bad investment advice or outright theft. It’s a sad fact of life that your own blood could rob you blind. But most often, that’s exactly what happens in cases of elder abuse: family perpetrators. You can download your advisor’s behavioral record on BrokerCheck and the Department of Insurance. You can create the “Stranger Danger” rule for the elderly in your family. But beware of the predators in your own family because every year, millions of dollars are lost in elder abuse.

All four health risks can derail your retirement, so be aware and keep on track.