1. Outline Your Retirement Goals: Understanding your retirement expenses and what “retirement” looks like to you will help you determine your income and expenses and what envision your lifestyle to look like.
2. Know the Important Dates: To avoid delays in coverage, you need to know when you can and should enroll in Part B and Part D of Medicare. You will also need to decide if you can and should keep you or your spouse’s group health insurance if applicable. Signing up for supplemental and/or drug coverage is not automatic.
3. Estimate Your Out of Pocket Health Care Costs: After deciding on the type of coverage you desire, estimate your out of pocket expenses, including costs for Parts A, B and D and any additional coverage you selected in Step 3. Additionally, since there are many items Medicare does not cover, which vary depending on the supplemental coverage you select, include those potential costs in your estimates. Consider purchasing additional insurance for cancer, final expense and an annuity to protect your retirement money and hedge against a catastrophe.