Vanguard article on medical costs in retirement

[gretah]

Someone on MMM posted this link to terrific and comprehensive article on medical costs in retirement.

"Planning for Health Care Costs in Retirement"

https://personal.vanguard.com/pdf/ISGPLHC.pdf

[aja8888]

Quote:

Originally Posted by gretah Someone on MMM posted this link to terrific and comprehensive article on medical costs in retirement. "Planning for Health Care Costs in Retirement" https://personal.vanguard.com/pdf/ISGPLHC.pdf

Thanks, great article and very accurate from this 70+ year old persons perspective.

[kevink]

Great article - thanks for posting it!

All I can say is I'm glad to have spent 4+ years in Mexico and be comfortable with both the medical care and assisted living/nursing home options there. U.S. health care and LTC care costs far exceed many retiree's entire annual income and things are getting worse every year - with the powers-that-be seemingly eager to gut what little safety net there is.

[Junior]

Interesting article.

I'm relieved to live in Europe in this case. It might have some disadvantages (in Spain, there's usually lower incomes than in US, I believe). But SS covers many things (not all of them but definitely helps), although is true that they take it from the salary. I am still not sure about which system is better (for individuals). What do you think?

[Dtail]

Quote:

Originally Posted by kevink Great article - thanks for posting it! All I can say is I'm glad to have spent 4+ years in Mexico and be comfortable with both the medical care and assisted living/nursing home options there. U.S. health care and LTC care costs far exceed many retiree's entire annual income and things are getting worse every year - with the powers-that-be seemingly eager to gut what little safety net there is.

+1 for Mexico
but don't you have to be under a certain age (maybe 62) in order to get on one of the public plans?

[kevink]

Quote:

Originally Posted by Dtail +1 for Mexico but don't you have to be under a certain age (maybe 62) in order to get on one of the public plans?

No, no age limits for Seguro Popular, which is the main government program. Many expats in popular retirement havens like Lake Chapala and San Miguel de Allende enroll in SP for emergency only use and then pay out of pocket for routine care. Many also hedge their bets once they hit age 65 by enrolling in bare bones basic Medicare too in case they have to return to the U.S., while those few who have really cut ties discontinue paying into the U.S. system.

Hopefully there will be more options in the U.S. in future but worth knowing about Mexico and other south-of-the-border options - especially for things like assisted living/nursing home care. I know several couples who've moved to Mexico because one spouse needed such care and paying $1200 a month for great care is a whole lot more appealing than going broke paying $6000-8000 a month in the U.S.

[MichaelB]

Quote:

Originally Posted by gretah Someone on MMM posted this link to terrific and comprehensive article on medical costs in retirement. "Planning for Health Care Costs in Retirement" https://personal.vanguard.com/pdf/ISGPLHC.pdf

This is really a very thoughtful analysis, thanks for posting it.

[Dtail]

Quote:

Originally Posted by kevink No, no age limits for Seguro Popular, which is the main government program. Many expats in popular retirement havens like Lake Chapala and San Miguel de Allende enroll in SP for emergency only use and then pay out of pocket for routine care. Many also hedge their bets once they hit age 65 by enrolling in bare bones basic Medicare too in case they have to return to the U.S., while those few who have really cut ties discontinue paying into the U.S. system. Hopefully there will be more options in the U.S. in future but worth knowing about Mexico and other south-of-the-border options - especially for things like assisted living/nursing home care. I know several couples who've moved to Mexico because one spouse needed such care and paying $1200 a month for great care is a whole lot more appealing than going broke paying $6000-8000 a month in the U.S.

Thanks for the response.
I thought there were 2 govt type plans. Perhaps the other plan has age limits?

[kevink]

Quote:

Originally Posted by Dtail Thanks for the response. I thought there were 2 govt type plans. Perhaps the other plan has age limits?

You're thinking of IMSS, which is used less and less and appears to be on its way to being subsumed within SP. Here is an excellent overview of options by a well-known facilitator (for visas, autos, health and much else) based in San Miguel de Allended. I recommend bookmarking her site if you plan on keeping Mexico open as an option.

HEALTHCARE