Good Health Means Wealth At Retirement

“Health is wealth”, according to the age-old saying, and never has it been more appropriate for American seniors and baby boomers. Today, getting a disease may set you back up to six figures. This is due to the health care costs rising rapidly every year.

According to Fidelity Investments, 80% of the total American population are worried that they may not be able to cover their health care costs once they reach retirement age. Their concerns are well-founded, as according to Fidelity, an average person may need to pay $220,000 per year to cover health care costs – and that number doesn’t count long-term care or other medical plans.  It could have a profound effect on  wealthy retirement.

Fortunately, this is avoidable. Pre-retirees can avoid this by doing the necessary steps, such as daily exercise and health care pre-planning, before they reach the retirement age. Here are some more tips you can make use of if you want to avoid financial troubles later on.

Invest on a savings account.

Pre-retirees can opt to save money by opening a Health Savings Account.  You can get one by having your employer open an account for you. Having an HSA is advantageous as contributions and payments are basically tax-free, which means that you can save more money later on once you retire.

However, there is a limit placed on this account. You can contribute $3,300 per individual and $6,550 for the whole family (http://www.towerswatson.com/en-US/Insights/Newsletters/Americas/insider/2013/IRS-Announces- 2014-HSA-Limits).

If you don’t have access to an HAS, you can always keep your money in a time deposit on a trusted bank. Through a time deposit, you can get monthly / yearly interests, which is a great help once you reach retirement age.

Take a look on what your company has to offer.

There are some companies that offer medical benefits for retired employees. Do a research on your company and see if they offer medical plans that can help you out during financial crises.

Of course, keep in mind that not all companies offer these plans. Always plan ahead and look at the contract and see if the benefits they offer can be of great use to you in the future.

Exercise now, reap the benefits later.

Fidelity found out that a retiree can save as much as 96% of his or her retirement money by simply keeping themselves fit and healthy during pre-retiree age. Exercising 30 minutes per day can strengthen the immune and nervous system, which is a good way to fight off “expensive” diseases such as cardiovascular diseases and cancers.

Leading a stress-free life can also help. According to a study, those who live a stress-free life are more inclined to be healthier and free from sicknesses later on at life. So if you feel that your work is giving you huge amounts of stress, take a break or leave the job for a better one. Spend some quality time with your family and take a vacation. Your body will thank you for making that decision.

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Again, health means wealth for seniors and baby boomers. If you keep your body fit and healthy today, you can save yourself from spending thousands of dollars at a later age.

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