The burden of increasing healthcare cost is often reflected in the balances of retirement accounts. Employee Benefit Adviser shared methods on how to lessen that blow.
Here's what you need to know.
1. Jeff Oldham, vice president of consumer strategy at Benefitfocus, said individuals with high deductible health plans should invest in a health savings account.
He said when people are planning for their retirement, the cost of healthcare is not often factored in. "A 65-year-old should anticipate $240,000 to cover future medical costs, and as a result an HSA is an excellent vehicle to use to fund both medical expenses while an employee is working and into retirement."
2. Diana Jordan, director of client consulting at Unified Trust Company, suggests explaining the necessity to budget for healthcare.
3. Ms. Jordan is seeing record rates of investment from millennials. She attributes that to a generational understanding about the need to plan for retirement because of an unsustainable Social Security platform.
4. Tom Park, director of retirement services at Annex Wealth Management, said all parties should begin investing as soon as possible.
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