Suppose you are one of the fortunate individuals that will receive a retirement package that includes continued health coverage from your company. In that case, it will more than likely come in the form of a Medicare Supplement or a Group Medicare Plan. The question is, will it meet your retirement needs?
My clients often ask to meet when preparing for retirement. They call to learn of their options in transitioning to a Medicare Plan and how it works. Unbeknownst to them, they have other options.
Sometimes I find the standard coverage does not provide my clients with what they need as their life changes. What is worse is that it could cost a lot of money. Furthermore, to curb costs throughout the years, many businesses find it necessary to cut the retirement benefits significantly.
I recently met with a client that was having to choose which prescriptions to purchase monthly. His company provided a Medicare plan that no longer covered his most expensive medication. He thought he would elect to stay on his “retirement package” that he had paid into for so long, believing that it would be to his advantage.
It is easy to experience a clash of emotions between your feelings and the financial reality after years of hard work investing in a retirement plan. However, due to the poor design of the corporate plan, I illustrated that he would save over $300 in prescriptions and $163 in monthly premiums by switching to a different plan. The instant savings spoke for itself.
Another client of mine is a retired police officer from Michigan. She had 30 years of service and had a nice Medicare Advantage Plan built into her retirement. At retirement though, she decided to move to another state. Unfortunately, Medicare Advantage Plans are networked by State / Region; and so, her plan was not in–network. She was able to buy a new plan that was more in line with her retirement needs.
It might come as a surprise for many to find out that the retirement package they’ve worked hard for can be more of a financial drain than a benefit. As life changes, retirement plan needs can also change. It is essential to closely examine if the plan you thought was right for you, ultimately is.
Written by Joy Sexton, Benefits Consultant, Sapoznik Insurance