National statistics report that healthcare costs for retired persons average $250,000 from age 65 through the remainder of life. How can a retired person (or anyone for that matter) afford this expense? Statistics show that 91 percent of those retired are totally dependent upon Social Security benefits for their monthly income. How can any retired person take their Social Security income and carve out an extra $250,000 to pay for health care? This is an impossible task! If anything is done to curtail Social Security benefits it will totally destroy the senior class. Medicare is soon running out of money and Medicaid is broke. I predict healthcare costs will be the largest hammer to come down on our financial world in the next five years.
As you read this article, take inventory and ask how you will pay for healthcare costs in retirement? If you do not have an answer, then you will probably be in this same group of people in the U.S. who are currently incurring $250,000 in medical/nursing home expenses that eat up all their retirement and life savings because they were not prepared. If you are not saving adequate money for retirement, then healthcare costs will eat up what little you have saved and destroy you right along with our nation.
I suggest 91 percent of the population needs to cut all expenses and not buy new homes, new gadgets, new cars, or go on expensive vacations until they have saved, saved, saved! Times are troubled and only promise to get worse for those who are in debt and have not established passive income they cannot outlive. If you are counting on Social Security and a risky 401(k) plan, you have no chance of survival.
Gloom and doom you say? It is what it is. The real magnitude of the situation just hasn’t hit the fan in your own living room yet, so you don’t see it but it’s coming. Plan on making changes now, while you still can. My word of caution is take action today! For more ideas on how to do this, contact me for a no cost consultation: firstname.lastname@example.org.