Include health care costs in retirement planning and you will help your clients enjoy a well-funded retirement. Start by viewing costs as a budget line item instead of an overwhelming lump sum, then look at ways to fund these estimates. Share this PDF with your client to bring empowerment to their decisions.

Medicare can be confusing because of its many numerous parts. For many retirees, Medicare insurance is essential for affording health care costs in retirement. Share this PDF with your clients to help them learn about Medicare and make a choice that best suits their needs.

Many clients are not aware that their modified adjusted gross income affects the amount they will pay for their Medicare premiums. Share this PDF with your clients to help demonstrate the importance of retirement income planning and budgeting each year for your healthcare costs.

Long-term care costs cover help for activities of daily living, whether that's in-home or at a residential facility like a nursing home. These costs are highly personalized depending on the preferences and potential needs of your client. Share this PDF with your client so they can learn more about LTC.

HSAs are tax-advantaged accounts that can be paired with a high-deductible plan. They can be used as long-term investment accounts, medical expense accounts, or both. Share this PDF with your clients so they can learn how to get the most out of an HSA option.

We use a standard actuarial forecasting approach. Health care estimates are calculated using client demographics, client coverage preferences, and the volume of healthcare services they may need in retirement.

We communicate health care cost estimates as the first year's cost instead of an overwhelming lump sum. We recommend using the median number for this year's financial planning.

Because the output will be presented as a range, you can use the median results as a benchmark in this year's planning and incorporate these into your client's financial plan like other fixed expenses. Print the customizable report to share with your clients.

Yes. The model includes a 2% inflation rate for Pre-Medicare and dental and a 2.4% rate for post-Medicare based on the Consumer Price Index assumptions from the 2020² Medicare Trustees' report.

We include costs for premiums as well as out-of-pocket costs for medical, dental, vision, and prescriptions.

LTC services help individuals with activities of daily living such as bathing, dressing, toileting, and eating when needed for 90 days or more.

LTC can be temporary (after surgery or in hospice care) or permanent (ongoing permanent disability or chronic conditions).

The full cost of care is included. Services include adult day care, assisted living, homemaker services, home health-aid, nursing homes, room and board, health care premiums, and out-of-pocket expenses for various types of LTC. The estimate does not assume any LTC insurance premiums.

Yes. If your client retires after 50 but prior to Medicare age, the tool will estimate both their pre- and post-Medicare cost.

Yes. There are three pre-Medicare plans to select from: Bronze, Silver, and employer-sponsored. Based on research, the Gold and Platinum plans are not options as they make up a very small percentage of the plans selected.³

Silver plans cover about 70% of health care costs unless eligible for cost sharing reduction in the form of subsidies. They have a moderate monthly premium and moderate cost when care is needed. This plan is good for people who can afford a higher premium than bronze and wish to have routine care covered.

Bronze plans cover about 60% of health care costs. They offer the lowest monthly premium and have the highest cost when care is needed. This plan is good for protecting against worst-case medical scenarios, but most routine care will typically not be covered.³

If you have additional questions, please feel free to reach out to your sales executive for support. If you don't have an aligned sales executive, contact sales at 800-997-2798 or at advisor_services@vanguard.com.