In a recent survey, RICPs® indicated that more of their clients are asking questions about health care expenses in retirement. As health care costs rise and decisions become more complex for clients, financial advisors who are involved with retirement income planning can help their clients in a number of important ways. First is coming up with an accurate estimate of health care costs in retirement. This is not so simple. Since Medicare premiums vary based on income, some clients have supplemental policies, and individual out-of-pocket costs vary tremendously.
There are other ways to add value as well. First is tax planning—helping clients control Modified Adjusted Gross Income to keep Medicare premiums down. Second is helping clients with key decisions such as whether to choose original Medicare or a Medicare Advantage plan, choosing the right Medicare Part D plan, and selecting a Medicare Supplement policy. Finally, there is the important annual decision about whether to change Medicare Part D plans or Medicare Advantage plans. Data shows that few retirees ever change plans, and many could get better coverage at a lower cost by periodically shopping for a better plan.
In this playlist, we have a series of lectures from Dr. Katy Votava, a nationally known expert on health care choices in retirement, discussing how financial advisors can help their clients address these issues.