Retirement marks an important life transition. After putting in decades of work, you’ve earned this time of enjoyment and relaxation. But navigating your health care needs could present unexpected hurdles. As the old saying goes, an ounce of prevention is worth a pound of cure. The best way to ensure a healthier, more comfortable retirement is to proactively address potential health care challenges.

This type of holistic approach to retirement planning is the heart of our Total Retirement philosophy. We understand that you can’t separate your health and wellness from your quality of life. Prioritizing your well-being today can set the stage for a long and happy retirement. It can also help protect your financial security during your golden years.

Every person is different, but below are some of the most common health care risks you may face in retirement—and, more importantly, how to prepare for them.

Chronic Illnesses

It goes without saying that your family history and lifestyle go hand in hand with your risk profile. This is why it’s so important to keep up with routine wellness visits with your primary care physician and any specialists who are on your health care team. Getting a handle on your health could help prevent chronic illnesses—or, at the very least, help you better manage them.

Here are some of the most common chronic diseases for older adults, according to the National Council on Aging:

• High blood pressure
• High cholesterol
• Obesity
• Arthritis
• Coronary heart disease
• Diabetes
• Chronic kidney disease
• Heart failure
• Depression
• Alzheimer’s disease and dementia

Cognitive Decline

Keeping active in retirement, both physically and mentally, is a good idea for many different reasons. Doing so can help you nourish your relationships and create new opportunities for social connection and community involvement. When it comes to cognitive health, research shows that playing games, doing puzzles and reading just three to four times a week can slow the rate of cognitive decline, even among those who are already affected.

Rising Medical Costs

Most people anticipate being retired for at least 20 to 30 years. Health care costs can add up quickly during this time, especially if you or your partner develop a chronic illness or require long-term care. These costs can take a big bite out of your nest egg if you aren’t ready for them. Even with Medicare, which begins at age 65, you’ll still need to budget for copays, deductibles and other out-of-pocket costs.

Long-Term Care Needs

If you or your spouse eventually need long-term care, it could create a major financial disruption. Below are the median monthly costs, according to a 2023 survey put out by Genworth and CareScout:

• In-home care: $5,720 for homemaker services; $6,292 for a home health aide
• Community and assisted living: $2,058 for adult day health care; $5,350 for an assisted living facility
• Nursing home facility: $8,669 for a semi-private room; $9,733 for a private room

5 Strategies to Help Mitigate These Risks

Every retiree has unique health care needs, but they all have one thing in common—putting their health and wellness first is essential to a happy retirement. Here are five strategies that could help mitigate the risks mentioned above.

1. Choose the Right Health Insurance Plan

Just because a plan has a lower premium, that doesn’t necessarily mean it’s the best option. For example, you could face a high deductible that leads to steep out-of-pocket expenses. You might also be limited in terms of in-network medical providers. These are important things to consider when open enrollment season rolls around each year. This is a window of time when you can modify your health insurance plan for the following year.

When you become old enough to enroll in Medicare, you might consider paying for a Part C plan. These are provided by private insurers and combine hospital visits, doctor’s visits, prescription drugs, vision, hearing and dental. If you’re looking for more information, our Medicare in 2025 Webinar is a great resource.

2. Build a Robust Health Care Fund

Between health insurance premiums, deductibles, prescription drugs and more, having a cushion of money on hand can go a long way. This is why a health savings account (HSA) can be such a valuable tool. You can make tax-deductible contributions during your working years, and enjoy tax-free withdrawals if you use these funds to pay for qualified medical costs. An added bonus is that once you turn 65, you can use this money for regular living expenses. However, you will owe taxes on these distributions.

If an HSA isn’t an option, you could also build a health care fund using a high-yield savings account. This allows your money to earn interest, and liquidity won’t be an issue. You could also rotate a portion of this money in and out of certificates of deposit (CDs) to earn potentially better returns.

3. Keep Up with Prevention

Preventing a health issue is always better than having to deal with a medical problem that’s already in motion. Connect with your medical care team and stay on top of all recommended screenings and routine care visits. If a problem does arise, you’ll be better positioned to tackle it. Understanding your unique risk factors can help you plan accordingly. This isn’t just important to enjoying a happy retirement. It can also prevent a mountain of medical bills, which could derail your finances during this stage of your life.

4. Incorporate Wellness Practices into Your Daily Routine

This pairs naturally with prevention. In terms of your physical health, what wellness activities feel fun and engaging? That may be a weekly pickle ball game or a neighborhood walking group—both of which incorporate a social component. You might also benefit from a gym membership or group exercise program.

Wellness practices also extend to your mental health. How can you find ways to reduce stress during retirement? That might involve going to therapy, taking up meditation, or learning about mindfulness practices. Here are some additional ways to maintain a healthy lifestyle in retirement.

5. Nurture Your Social Connections

It’s hard to separate your social life from your physical and mental well-being. Having robust social connections can help you feel a sense of belonging in retirement. You can get this through deep bonds with friends old and new, as well as through lighter connections with people throughout your community. This is one reason some retirees choose to volunteer or pick up a part-time job doing something engaging that keeps them social. This can also contribute to your sense of purpose.

At Beacon Bridge Wealth Partners, we understand why it’s so important to put your health and wellness at the center of your retirement plan. That includes making a plan for aging. Knowing your health care risks, and taking steps to mitigate them, is just as important as building your nest egg. This is a central theme of our Total Retirement process. And what we’ve found again and again is that financial health, physical health, and mental well-being are all connected. Reach out to us today to start creating a holistic retirement plan that’s tailored to you.