“Financial Experts Say Most Retirees Forget to Plan for This One Major Expense – and It Can Cost Tens of Thousands” featuring Jeff Corliss

2 minutes

The Retirement Cost Many People Overlook

When preparing for retirement, most people focus on savings, investments, and long-term income. But one major expense is often underestimated or overlooked entirely: healthcare.

In a recent article, Jeffrey Corliss, CFP®, Managing Director at Hightower Signature Wealth, shared insight into one of the most common planning gaps he sees when working with retirees.

Where People Underestimate Costs

According to Corliss, healthcare expenses are often missed in three key areas:

  • Pre-Medicare coverage before age 65
  • Ongoing healthcare costs during retirement
  • Long-term care needs later in life

However, he notes the biggest misconception is how much Medicare actually covers.

“Many people assume Medicare will cover most, if not all, of their healthcare expenses… In reality, Medicare provides only partial coverage and does not cover most long-term care needs.”

The Biggest Surprise in Retirement Planning

Another common assumption is that healthcare coverage will remain the same after leaving the workforce. In reality, coverage often changes significantly. Retirees may need to rely on options like COBRA or individual insurance plans, which can come with higher costs and different benefits than employer-sponsored coverage.

Long-term care is another major blind spot. Many people assume it will be covered by Medicare or handled by family, but in most cases, it requires separate planning and can become a significant, ongoing expense.

What This Means for Planning

These costs can add up quickly and may have a meaningful impact on long-term financial security if not accounted for early.

The key takeaway is simple. Retirement planning is not just about income and investments. It also requires a clear understanding of healthcare expenses and how they may change over time.

Healthcare is one of the most important, and often underestimated, parts of retirement planning. Taking the time to plan for these expenses ahead of retirement can help avoid costly surprises and provide greater confidence in the years ahead.

Read the full article here

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.

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Hightower Signature Wealth is a fiduciary wealth management practice that provides investment management, financial planning, estate strategies, insurance, and banking solutions. We work with families, business owners, professionals, women, and retirees across more than 40 offices nationwide. Our advisors take the time to understand your financial priorities, develop a plan around your goals, and adjust that plan as your life and circumstances evolve.