There are often significant medical expenses that come along with aging. One of the best things that people can do to prepare for this is simply to plan in advance. It’s the type of thing that cannot always be addressed if it is put off until the last minute.
Unfortunately, however, that is what a lot of people have been doing. According to some reports: “1 in 4 older Americans have less than $500 saved to cover medical expenses.”
As you can imagine, that number is nowhere near enough to cover potential medical expenses that will arise. There are those who have spent their entire lives saving up hundreds of thousands of dollars, planning to retire and thinking that they have enough, only to find that a medical emergency quickly drains that entire account. Someone who felt that they were making wise financial decisions for years could lose everything in a span of 12 months.
Putting your plan in place
That is why having a plan in place in advance is your best option to secure your medical and financial future. You can consider different ways to preserve the assets that you have, along with tactics to set money aside for specific purposes – like medical care. Estate planning can also help you choose individuals to assist you with that medical care, perhaps by using a power of attorney.
It’s very hard to predict medical expenses at the later stages in your life, but knowing that you already have a plan in place to take care of these potential outcomes can give you peace of mind. Make sure you know exactly what steps to take to set it up.