Staying
healthy could save you some money.
Provided by Taylor McClish
How
healthy a retirement do you think you will have? If
you can stay active as a senior and curb or avoid certain habits, you could
potentially reduce one type of retirement expense.
Each year,
Fidelity Investments presents an analysis of retiree health care costs. In
2019, Fidelity projected that the average 65-year-old couple would spend around
$285,000 on health care during retirement, including about $11,000 in the first
year. Both projections took Medicare benefits into account.1,2
Could
healthy behaviors help you save retirement dollars? Maybe.
From another point of view, ceasing unhealthy habits certainly would. For
example, the average pack of cigarettes now costs $6.28, according to the
Centers for Disease Control. That adds up to $2,292 annually. A decade of
pack-a-day smoking therefore projects to $22,920 in expenses (and that does not
even consider inflation or the possibility of new state or local cigarette
taxes). If you could invest $2,292 a year for 20 years and realize a 7% annual
return on that money, your sustained investment would grow to more than
$100,000.
Think
about joining a senior wellness program. Some communities offer
classes developed through the National Council on Aging’s Center for Healthy
Aging. (NCOA is a nonprofit senior advocacy organization founded in the 1950s.)
These physical activity programs are evidence based; the exercise curriculum
has been shown to provide discernible health benefits to their participants.
Often, they are low cost or free and low impact as well.3
Be sure to use your
Medicare benefits. Medicare entitles you to an annual free wellness visit with a primary
care physician. In this visit, you can have your blood pressure, weight, and overall health checked, and the doctor can
also run a check for the possibility of dementia. You can also get free
screening for diabetes, certain kinds of cancers, hepatitis B and C, and heart
disease under Medicare if your physician classifies you as “at risk” for these
conditions. Medicare may even pick up the tab for smoking cessation counseling
and obesity counseling for certain people.4
If you stay
fairly healthy well into your retirement, there could be a nice financial side
effect: an exemption, for the present, from expenses that some of your peers
could be dealing with.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
- investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 - cnbc.com/2019/04/02/health-care-costs-for-retirees-climb-to-285000.html
[4/2/19]
2 - fidelity.com/mymoneylifestyle/healthcare/hc-ret.html
[9/4/19]
3 - ncoa.org/center-for-healthy-aging/basics-of-evidence-based-programs/physical-activity-programs-for-older-adults
[9/10/19]
4 - tinyurl.com/y3fmq9bf
[8/24/19]