Paying Your Health Costs In Retirement

In October’s article, Unexpected Expenses During Retirement, we discussed the importance of considering the inflation of health care costs while planning for your retirement, but didn’t discuss specifics on how to save or budget for those expenses.  Let’s do that today.

The January 2012 edition of Kiplinger’s Retirement Report asserts, “a 65-year-old couple who lives until 92 can expect to spend nearly $400,000 in out-of-pocket medical costs, assuming a 6% annual health care inflation rate.”  And that number doesn’t include long-term-care expenses!  You might think there is no hope for you now, but there are ways to reduce and pay for your medical costs, if you are prepared.

• Getting Started in a Financially Secure Retirement, by former Boeing executive Henry “Bud” Hebeler, recommends “all retirees keep a liquid reserve for all emergency expenses, which could include unexpected medical costs.”  A Money Market account would work well for this type of savings.  Kiplinger’s Retirement Report reminds us this reserve should not be included in your retirement investment total when calculating your annual retirement spending.  It truly is only for emergencies.
  

• Another way to build savings for health care costs in retirement is to open a health savings account, if you qualify.  Susan Garland, Kiplinger’s Retirement Report editor, says, “Although you can’t contribute to an HAS once you enroll in Medicare, you can withdraw the accumulated funds in the account tax-free for medical expenses, such as Medicare premiums, drugs and long-term-care insurance premiums.”  Contributions to these accounts are tax-deductible or can be made with pre-tax dollars.  To qualify, your health insurance policy must be deemed to be “HSA compatible” and have a deductible of at least $1,200 for self-only coverage or $2,400 for family coverage.  For more information about these types of accounts, consult this Wikipedia site.
  

• Reduce your spending any way possible.  Take advantage of free Medicare services, which include annual wellness exams, some screenings and some vaccines.  Also, Garland suggests you “find savings each year during Medicare open enrollment by scrutinizing Part D drug and Medicare Advantage plans.”
  

• Using home equity is an option, but tread lightly.  Once you burn through loan money, you may have no other options.  The best bet is to pay medical expenses by using the money as a line of credit.  This way, you are only paying interest on actual expenses and drawing upon your equity slowly.

If paying for health costs during retirement still feels like an overwhelming task, be sure to ask your financial adviser, and other qualified professional about how you can best be prepared.

Reduce Stress; Improve Your Health and Happiness

In small amounts, stress is good.  It can motivate you and give you that extra boost of energy or motivation to finish a large project.  But, when increased levels of stress are ongoing, they can impact you in many negative ways including a drop off in productivity, performance and physical and mental health. While it may be impossible to completely eliminate all sources of stress in your life and at work, it is possible to lower and contain these stress levels. Here are some ways to reduce the occurrence of stress in your workplace:

• Learn/practice effective communication skills.
  Effective communication leads to reduced tension in the workplace. “Not knowing – about potential changes, supervisors’ expectations, or perceived work performance – is one of the greatest sources of employee stress,” reports the Snelling Staffing Services blog.
  

• Avoid procrastination.

• Don’t over commit yourself/prioritize tasks.
  Don’t try to fit too much into your schedule. “All too often, we underestimate how long things will take. If you’ve got too much on your plate, distinguish between the “shoulds” and the “musts.” Drop tasks that aren’t truly necessary to the bottom of the list or eliminate them entirely,” says HelpGuide.org, in collaboration with Harvard Medical School.
  

• Have realistic expectations.

• Balance work/life (make time for you).
  Too much work and not enough time for other responsibilities/daily tasks can lead to burnout. Balance your schedule “between work and family life, social activities and solitary pursuits, daily responsibilities and downtime.” Even something as simple as a lunch-time get together can help lighten the mood.
  

• Be flexible.

• Take care of yourself.
  Keeping track of your own physical and emotional health can help you stay more resilient towards stress. Through 30 minutes of aerobic exercise a day, you can sharpen your focus, build energy and relax your mind and body. Eating several small meals throughout the day will help you maintain an even blood sugar level and avoid mood alterations. While alcohol consumption may temporarily reduce levels of anxiety, overindulging can create stress as the effects wear off. Not sleeping enough can make you even more vulnerable to stress. “When you’re well-rested, it’s much easier to keep your emotional balance, a key factor in coping with job and workplace stress.”
  

• Develop good working relationships.

• Incorporate sense of humor/laughter.
  Stress can easily be reduced by sharing mutual laughter with others at the workplace. “Find a way to get through a tough situation by injecting a little humor. Anything you can do to cultivate a friendlier, relaxed atmosphere at work will pay off over the long-term.”
  

• Reward yourself/take a break.
  

For more information about this topic, follow these links:
Stress at Work: How to Manage and Reduce Workplace Stress 
10 Ways to Reduce Stress in the Workplace 
Reduce Stress – How to manage stress in the workplace!
Effective Ways to Reduce Stress in the Workplace
How To Reduce Workplace Stress
Managing Job Stress

>> How do you cope with everyday stresses?
Do you have a tip you could share with the community? 

Munch Away on Less than 150 Calories

Looking for some easy to make low-calorie snack ideas?

Here are some options that not only taste good but are less than 150 calories. Snacking doesn’t necessarily mean unhealthy. It isn’t an indulgence; it’s an important part of your diet, plus it keeps your energy up and your metabolism going. 

• Cheese and Crackers:
  Fit and Fab Living suggests that instead of high fat cheese, use a light spreadable cheese. Choose a high-fiber cracker to pair with it, and you’ll have an easy and delicious snack. The fiber from the crackers and protein from the cheese will fill you up quickly. (3-4 crackers w/light spreadable cheese: 150 calories) 

• Chocolate Strawberries:
  Satisfy your chocolate craving and fruit fix at the same time. According to glamour.com, strawberries are a great source of vitamin C and chocolate contains polyphonels, which aid in lowering blood pressure.  (1 cup strawberries dipped in 1 tbsp melted chocolate chips: 115 calories) 

• Apple with Peanut Butter (or cheese):
  Fit and Fab Living also suggests apples with peanut butter as a healthy snack.  Apples are fiber potent and contain complex carbs. When paired with peanut butter, which is full of protein, this is a healthy and tasty snack. Use chunky peanut butter for a “chewier” texture and more fiber. (1 medium apple, 1 tbsp peanut butter: 150 calories) 

• Popcorn:
  Tanya Zuckerbrot of foxnews.com says mini bags of Orville Redenbacher’s Smart Pop and Jolly Time Healthy Pop are approximately 100 calories per bag, with 2 grams of fat and 5 grams of fiber.  Serotonin, an amino acid that boosts feelings of happiness and calmness, is abundant in popcorn. Add parmesan cheese, which adds a boost of protein and is low in calories, for a bolder flavor. Try homemade popcorn as an easy and tasty alternative. (Mini bag of Orville Redenbacher’s Smart Pop or Jolly Time Healthy Pop popcorn: 100 calories) 

• Greek Yogurt:
  Eatstrong.com states Greek-style yogurt offers twice the protein of standard yogurts, in addition to calcium, vitamins A and B12, and potassium. It also has less sugar than normal yogurts and will keep you full without increasing your blood sugar levels. (1 – 6 oz. container: 120 calories, 16 grams protein) 

• Hummus with Vegetables or crisp breads:
  Zuckerbrot and Fit and Fab Living rave that hummus is high in protein and can be paired with an assortment of vegetables (best with carrots, celery or broccoli). Vegetables are high in fiber, full of nutrients and will keep you full. Substitute a crisp bread or fiber-potent cracker as an alternative to vegetables.  (2 tbsp hummus, 1 cup vegetables: 150 calories) 

• Almonds/nuts:
  When it comes to nuts, almonds are one of the healthiest declares Fit and Fab Living. They contain high amounts of monounsaturated fats and Vitamin E. Monounsaturated fats aid in increasing HDL cholesterol and lowering LDL cholesterol levels. (1/4 cup ≈ 21 almonds: 148 calories, 5.4 grams protein) 

>> What is your favorite snack to munch on?  Have you found an easy way to incorporate healthy snacking into your lifestyle?