RETIREMENT AT AGE 65 OR OLDER
01.Core Concepts
• For most retirees, Medicare will become their primary medical expense coverage beginning at age 65. • Traditional Medicare has deductibles, coinsurance payments, and no maximum out-of-pocket (MOOP) limit. • Medigap insurance can offset some of these costs, and some forms of Medigap also offer a maximum out-of-pocket limit. • Medicare Part C may have lower deductibles and coinsurance payments and may have an annual maximum out-of-pocket limit. • Estimating the amount of funds needed for health care costs in retirement can be challenging. • Known current and estimated future premiums and MOOPs can be used to estimate best case, worst case (maximum possible), and most likely case (maximum probable) scenarios, or • Estimates can be made using historical national averages.