Retirement Health Care Fund

WSJ published a story late August, prior to the latest stock market collapse, for near-retirees and the first item on the list was to establish a “health-care fund.” If you are still considering retirement (some have decided to defer retirement for a year or two to make up for the retirement fund shortfall, this is very valuable advice you should pay close attention to.

You’re probably familiar with emergency funds – the pot of money you set aside to cover short term emergencies like unexpected medical bills, car breakdowns, home repairs, etc. The health-care fund is an extension of that concept but applicable to what will likely be one of the biggest challenges of your entire retirement – your health. The idea behind the fund is that you should have enough in that fund to pay for all your medical needs from monthly health insurance premiums to co-pays to any potential medical problems you may encounter.

Another important piece of advice is to get a physical to learn whether you are an at-risk individual. You don’t want to cancel your current insurance only to find out you can’t get insurance!

Ready to Retire? First Plan Your Exit Strategy [The Wall Street Journal]






One response to “Retirement Health Care Fund”

  1. Very true! Make sure you’re well enough before you go after another insurance policy. It’s not going to be any cheaper if they find a lump somewhere! 🙂

    Love the blog!