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But while this strategy works for housing and entertainment, its not one you might count on with healthcare.
If you think Medicare will protect you from that, you may be mistaken at leastaccording to Suze Orman.
A key reason is the unexpected costs associated with different plans.
That can quicklyruin a budgetand disrupt an otherwise peaceful retirement.
Original Medicare also doesnt provide any coverage for commonly used services like dental, hearing and vision.
These costs can add up over time, eating into your savings.
Retirees who want expanded coverage beyond Original Medicare will need to pay extra for Medicare Advantage.
That makes it important to think carefully before choosing a plan.
Thats why Orman recommends signing up for a strong Medigap policy.
She says, You are responsible for 20% of your Part B expenses …
This is why anyone with Original Medicare should also have a robust Medigap policy.
It will cover that 20% you are on the hook for.
Medigap policies are specifically designed to fill the holes in Original Medicare coverage.
They can reduce the amount you pay out of pocket for deductibles, copayments and coinsurance.
Plus, youll get expanded coverage for things like hospitalizations, lab tests and home healthcare.
Orman recognizes that youll need to pay more on a monthly basis for Medigap supplemental coverage.
But thats worth doing, in her view.
But theres a lot you’ve got the option to do tomanage these costs.
For example, if youre still working, you could make tax-deductible contributions to a health savings account.
These earnings grow without incurring taxes, leaving you more for healthcare costs in retirement.
Finally, exercising regularly can also reduce healthcare costs in retirement significantly.
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