Preparing for Your Retirement: Considering Healthcare Costs

Imagine this: after working hard all your life, it’s finally time to enjoy retirement. You’re excited about the freedom, relaxation, and opportunities to pursue hobbies, goals, and dreams. But then, a health issue arises, and suddenly your expenses start eating into your savings.

In the Philippines, healthcare costs can be a significant burden, threatening the financial cushion you’ve built for retirement. Planning for these expenses is essential to ensuring a financially sound retirement so you can enjoy life without work-related worries.

Here are some tips to help you prepare for healthcare costs and safeguard your retirement:

Compute Potential Healthcare Expenses

Unfortunately, healthcare costs in the Philippines tend to increase with age. When planning for retirement, account for routine check-ups, preventive care, and potential long-term care needs. 

Even if you lead a healthy lifestyle now, planning for the unexpected can help protect your savings from unforeseen medical expenses.

Your estimated healthcare expenses should include:

• Hospital visits
• Medications
• Health maintenance organization (HMO) costs
• Health insurance premiums
• Preventative care

These are just the basics. It’s wise to account for additional expenses from unexpected health issues like surgeries or chronic conditions that may require ongoing treatment. While government healthcare programs can help reduce some of these financial burdens, they often won’t cover all treatment costs, so it’s best not to rely on them alone.

Invest in Health Insurance and HMOs

Health insurance and HMOs can provide essential financial support, making medical costs more manageable. Make these an integral part of your retirement plan. Reach out to insurance and HMO providers to explore recommended plans and begin budgeting accordingly.

Also, consider the coverage age - some plans only extend coverage up to 65 or 85 years old, so choosing a health plan with adequate long-term coverage is essential.

Start a Health Savings Fund

In addition to insurance and HMO plans, it’s wise to have a dedicated health savings fund. Insurance and HMO plans may not cover every expense, so having a separate fund can help prevent unexpected healthcare costs from dipping into your retirement savings.

Start contributing to a health fund as early as possible, consistently setting aside a portion of your income. Place it in a secure investment where it can grow over time.

Take Preventive Health Measures

While some healthcare expenses are unavoidable, certain health issues can be minimized or prevented by maintaining a healthy lifestyle. Reducing the risk of chronic illnesses through a balanced diet, regular exercise, and stress management can significantly lower your healthcare costs over time.

Though preventive measures may feel like an added expense now, they can save you money in the long run by reducing the need for costly treatments in the future.

Get Financial Advice for Retirement Planning

A financial advisor can provide valuable insights and guidance on preparing for healthcare expenses in retirement. They can help you estimate potential costs, select suitable insurance options, and strategize how much to save specifically for healthcare. Advisors can also integrate healthcare planning into your broader retirement strategy, aligning your savings and investments with your healthcare needs.

At InLife Sheroes, we’re committed to empowering women to take charge of their financial health. With proper planning, you can enter retirement with confidence, knowing you’re prepared for the journey ahead.

Get financial advice from the experts. Email us if you want to talk to a financial advisor.