Create an income plan that helps clients pay for health care
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Create an income plan that helps clients pay for health care

Vanguard Perspective

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September 11, 2024

  • Health care expenses during retirement can be substantial. It is prudent to prepare for these costs ahead of time.
  • Establish a comprehensive budget that encompasses health care costs, including provisions for long-term care expenses.
  • Utilize Vanguard's resources to assist in your planning. A client-approved guide, a health care page, and a health care cost estimator tool are available.
  • You may also consult a financial advisor for assistance with this process.

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The significant expense of health care may be inevitable for your clients in retirement. But with your help, it can also be manageable so that it doesn’t overshadow all the great parts about being retired. The key is planning for those costs ahead of time.

You increase your value as a financial advisor when you help clients view their projected health care costs and financial planning for retirement holistically. Vanguard has helped thousands of advisors like you to navigate this topic through our educational health care webinars, advisor-supporting health care content, and online tools. We’re excited to continue sharing this expertise as you and your clients gear up for health care open enrollment season and beyond.

At the highest level, a three-step approach to health care expenses can provide you and your clients a simple yet effective framework:

  1.  Budget for health care: With your help, clients can proactively consider health care expenses so that they can also enjoy the rewards of retirement.
  2.  Plan how to pay: This involves mapping out in detail how health care costs fit into specific clients’ budgets.
  3.  Review the likelihood of long-term care (LTC): Discuss with clients the possible, eventual need for long-term care, and explain how they have multiple ways to prepare for it.

Start the conversation

We created this client-approved guide to help you get the conversation going. Share it with your clients to identify their concerns about navigating and paying for health care expenses in retirement. It can be an effective tool for demonstrating your value to clients as a wholistic financial planning professional.

Looking for more resources? Our health care page provides you and your clients additional content to guide their planning for health care expenses in retirement. Try our health care cost estimator tool to help your clients gain a better understanding of what to expect.

 

Notes:

The information contained in this website is for informational and educational purposes only. The information on this website does not constitute financial, investment, legal or tax advice. Please consult with an attorney or tax professional for your specific situation.

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