Articles & Research!
The State of Retirement Income for 2026 (Morningstar)
Understand how to maximize retirement income through effective financial planning for retirement, incorporating safe withdrawal updates and dynamic strategies.
While the 4% rule is a widely accepted guideline for a safe withdrawal rate, our latest research suggests that retirees can withdraw as much as 3.9% in 2026. However, depending on their strategies and spending/ending ratios, they may be able to withdraw more. Additionally, it's important to consider health care costs in retirement, which can significantly impact overall income needs. Utilizing available Medicare resources can further aid in these financial decisions.
So how can investors determine the right approach for their retirement goals?
2026 Read on Retirement®: A new era of retirement (Blackrock)
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Closing the confidence – capability gap will define the new era of retirement. Participants and plan sponsors are optimistic about retirement; however, BlackRock's Read on Retirement® reveals a gap between retirement expectations and projected outcomes. The report explores the new capabilities participants and sponsors are embracing, including effective financial planning for retirement, managing health care costs in retirement, and leveraging Medicare resources to help close that gap, from active management and private markets to guaranteed income.
Insurance Overlays and Retirement Spending (Dimensional Fund Advisors)
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Insurance Overlays and Retirement Spending: The Case of Protected Lifetime Income
KEY TAKEAWAYS
Insurance overlays can be effective at increasing retirement spending and should be considered in financial planning for retirement. They do not require investors to forgo control of their assets, allowing for more flexibility. Additionally, insurance overlays may pair well with tax-aware investments, which can also help manage health care costs in retirement. Utilizing Medicare resources can further complement these strategies.
Medicare and the high cost of prescription drugs (by Mary Beth Franklin--Feb 26, 2019)
There is no annual limit on out-of-pocket costs under Medicare Part D.
"My medical costs have far exceeded what I ever thought I would need to spend at my age," said Mr. Sorkin, who is 71 and still working part time. "I am fortunate, but how many seniors can afford this expense? This highlights the importance of financial planning for retirement, especially when considering the rising health care costs in retirement. Utilizing Medicare resources can help many manage these expenses more effectively."
Planning potholes and banana peels (by Steve Gresham--Feb 4, 2019)
Market volatility can lead to more significant discussions than just beating the market and cutting fees. There's an increasing gap in financial planning for retirement, particularly between retirement plans and Medicare. Many individuals face challenges in understanding health care costs in retirement, primarily because numerous advisers do not have adequate tools to estimate future out-of-pocket expenses. Alarmingly, about 80% to 85% of financial advisers fail to provide comprehensive financial planning, which makes gaps like this one a considerable area of risk. Utilizing the right Medicare resources can help bridge this divide.
The black hole of financial planning: Health care costs (by Mary Beth Franklin--June 26, 2018)
Affluent clients are confident about their financial planning for retirement, yet they often express concerns regarding health care costs in retirement. The second most cited reason for not discussing these expenses with a financial adviser is the perception that advisers lack sufficient knowledge on the topic. According to the survey, nearly 40% of older adults who work with a financial adviser agreed with the statement: 'Financial advisers do not know enough about health care costs, including relevant Medicare resources.'
Medicare enrollment: Prepare or pay the price (by Mary Beth Franklin--Nov 24, 2018)
With rising health care costs in retirement threatening to derail carefully constructed financial planning for retirement, advisers should ensure clients successfully navigate the process of signing up for Medicare to avoid stiff penalties.
Late-enrollment penalties can significantly impact your clients' finances. If they miss their initial enrollment period, they will incur a delayed enrollment penalty of 10% for every 12 full months they were eligible to enroll in Medicare Part B but did not. This penalty persists for as long as they maintain Medicare Part B coverage.
For instance, if your client mistakenly assumes their retiree health plan or COBRA coverage will replace Medicare and delays signing up for Medicare Part B for two years after their initial enrollment period, they would face a delayed enrollment penalty of 20% of the standard Part B premium every month for the rest of their life. Utilizing Medicare resources effectively can help clients avoid these costly penalties.
Medicare Resources
Medicare.gov
The Official U.S. Government Site for Medicare offers vital Medicare resources to assist you in managing health care costs in retirement and making informed financial planning for retirement decisions.
2019 Medicare & You Guide
THE OFFICIAL U.S. GOVERNMENT MEDICARE HANDBOOK offers essential Medicare resources that can aid in understanding health care costs in retirement. It's a vital tool for anyone considering financial planning for retirement, ensuring that you're well-informed about the various aspects of Medicare coverage.
Medicare Premiums: Rules For Higher-Income Beneficiaries
If your income is higher, the law mandates an adjustment to your monthly Medicare Part B (medical insurance) and Medicare prescription drug coverage premiums, which is an important consideration in your financial planning for retirement, particularly in managing health care costs in retirement. Utilizing Medicare resources can also help you navigate these adjustments effectively.
New Medicare Cards!
Your new card has a unique Medicare Number that's specific to you, replacing your Social Security Number. This change is beneficial for your identity protection, especially as you consider financial planning for retirement and managing health care costs in retirement. Make sure to explore various Medicare resources to maximize your benefits.
Medicare Costs-at-a-Glance (2019)
Below are the basic costs for individuals with Medicare, which are essential for financial planning for retirement. To compare health care costs in retirement across specific health care plans, visit the Medicare Plan Finder. For detailed cost information—such as whether you have met your deductible, your payment responsibility for specific items or services, or the status of a claim—be sure to check MyMedicare.gov for valuable Medicare resources.
Medicare.gov Plan Finder
Start here to explore Medicare Advantage plans, such as HMOs or PPOs, and Medicare Prescription Drug Plans (Part D), essential components of financial planning for retirement that can help manage health care costs in retirement.
OR
You can utilize the user-friendly Medicareful.com web tool, a valuable resource for navigating Medicare resources.
Avoid the Pitfalls: Part B late enrollment penalty.
In most cases, if you don't sign up for Part B when you're first eligible, you'll face a late enrollment penalty. This penalty must be paid as long as you have Part B, which is an important consideration when planning for health care costs in retirement. It's advisable to explore Medicare resources to ensure you understand your options and avoid unnecessary fees.
Avoid the Pitfalls: Part D late enrollment penalty.
How do I know if I owe a penalty? The late enrollment penalty is an added amount to your Medicare Part D monthly premium. After you join a Medicare drug plan, the plan will inform you if you owe a penalty and what your adjusted premium will be. This understanding is crucial for your financial planning for retirement, especially when considering health care costs in retirement. Generally, you'll have to pay this penalty for as long as you are enrolled in a Medicare drug plan, making it essential to utilize available Medicare resources.