There are a lot of decisions to make when it comes to choosing your plan for Medicare, and we want to make it as easy as possible for you. With modern medicine, Americans are living longer and longer, which can make it hard to save for retirement. In order to help you save money, here are 3 important things to avoid doing:
- Forgetting About Plan D
Just because you chose the best Plan D option when you signed up for Medicare, doesn’t mean that it is still the best plan. These plans change yearly, so much so that they may not be relevant to your medical needs anymore. It’s important to check these plans yearly, and find the one that best suits your needs. Keep in mind that the cheapest option is not always the best option for you. Paying a little bit more each month could save you hundreds of dollars depending on what your medical prescription needs are.
- Failing to Compare Original Medicare with Medicare Advantage
Original Medicare (Part A & B) and Medicare Advantage (Part C) have different benefits to Medicare-eligible members depending on their medical needs. Original Medicare accepts a larger list of physicians so it is likely that your physician is already on the accepted list. Medicare Advantage has a much smaller accepted list of physicians to choose from, but it lumps all the services of Part A, Part B, Part D, and dental, vision, and hearing services into one package. Depending on your medical needs, one of these plans will be of more value to you than the other. So it’s important to do your research and ask any questions you may have regarding which plan to choose.
- Not Setting Up a Retirement Withdrawal Plan
This is an important one, because if you don’t set a retirement withdrawal plan, then you could lose a substantial amount of money. An individual who earns more than $85,000 per year and joint-filers who earn more than $170,000 per year pay more for their Part B and Part D premiums. If you aren’t paying attention to how much money is withdrawn from your 401(k) or the sale of stock from a personal investment account then you could accidentally push yourself over this annual limit, causing you to pay a Medicare surcharge. In order to avoid this, have a withdrawal plan in place. Estimate how much your expenses will be during retirement and plan how you’ll withdraw money from your retirement accounts. Also consider using a Roth IRA as this allows your money to grow tax-free for life. A Roth IRA will give you extra income during retirement that you can use towards your medical expenses. An added bonus is that eligible withdrawals from your Roth IRA do not count towards earned income, helping you stay below the limits of a Medicare surcharge.