Retirement expenses: How to supplement social security and medicare
Social Security and Medicare provide a good foundation for your retirement—but they won’t take care of all your financial needs.
You may need 85% of your pre-retirement income to maintain your current standard of living while in retirement. Considering that Social Security benefits will likely provide only a portion of your income, you'll need other sources to make up the rest.
And while Medicare covers some of the cost of healthcare, you're still responsible for the remainder. Expenses not covered by Medicare include:
- Vision and dental care
- Long-term care
These types of out-of-pocket healthcare expenses could be substantial. Fortunately, you have time before retirement to start making up any shortfall. For instance, you might consider increasing your retirement plan contributions, opening a health savings account (HSA) or purchasing long-term care insurance.
An advisor with Principal® can help you determine which options are right for you, so you can feel confident about heading into retirement prepared for whatever expenses may come your way.