The New Cost of Growing Old

When I was growing up, retirement looked quite different. My parents’ generation expected to stop working in their mid-60s, collect a pension/Social Security and enjoy the years they had earned.

What Changed?

Today, almost one fifth of Americans over the age of 65 are still working, according to the U.S. Bureau of Labor Statistics, the majority of which work because they have no choice.

The truth is this is not your father’s retirement. No one is expecting to be able to retire and live on Social Security alone, and that was never what it was designed for. It was designed to supplement your own pension/savings that you had been able to accumulate through decades of hard work.

The problem is how life has changed in a generation. More people, especially women, have had to scrape by on one salary instead of two like they did in the ‘70s which barely allowed for the necessities let alone save for retirement.

Once we reached retirement age, many of us were shocked to find how little standard Medicare actually covers. Medicare, if it works at all, only does so with a variety of paid supplemental plans ranging from Part B to Part H. In 1970, the Medicare supplement Part B cost an additional $4 per month. Today, Medicare Part B costs $185 per month.

So, What Can We Do?

By the time we have reached our 60s, we are mentally and physically exhausted from decades of work. That’s understandable. Yet so many people take such an extreme view of retirement. They think that it’s the end of our working lives and the end of our usefulness and purpose. That is simply not true.

Slow down if you must but do not stop working. Rather than being the end of our career, it can be the beginning of something so much better. Find something you love to do and see if you can work part time in that field. It may be less money but may find that you actually enjoy going to work again and the money enhances the quality of your life.

I like to think of it like riding a train. Retirement may be the last stop on the tracks but there’s nothing to stop you leaving the station and continuing your journey by bus.

Why not try temporary or contract work. You can work for a couple of months and take some time off between assignments. Many people prefer this to working part-time as it allows them time to travel and relax without committing to a job.

Here are some great suggestions for saving money.

1. Review Your Medicare Coverage Frequently

Every year review your Medicare plan to see if it’s possible to cut costs during the annual Open Enrollment period (October 15–December 7) and speak to a professional about your plans.

2. Ask for Generic Medications

By law, generic drugs have the same active ingredients and quality as name brands. There are significant savings to be made by buying the generic version of your medication. Also, see if there are any coupons you can use for an even better price. I have had medication price go down from $250 to $20 using sites like GoodRX.

Also compare pharmacies which can vary widely in price. It’s possible you may have to separate your prescriptions to get the best deals, but it can be worth it.

3. Stay Active

I say this every time, but tegular physical activity can reduce or eliminate many conditions. Even walking or swimming can make an enormous difference if done regularly.

4. Prioritize Preventive Care

Take advantage of Medicare-covered preventive services, such as:

• Annual wellness visits
• Cancer screenings
• Vaccinations
• Blood pressure and cholesterol checks

Finding problems early often reduces treatment costs later and saves lives.

5. Ask About Lower-Cost Treatment Options

If a doctor recommends a test or procedure, ask questions such as:

• “Is there a less expensive alternative?”
• “Is this test necessary right now?”
• “Can this be done at an outpatient imaging center instead of a hospital?”

6. Build a Healthy Lifestyle

Small habits can have long-term financial benefits:

• Eat a balanced diet.
• Maintain a healthy weight.
• Don’t smoke.
• Limit alcohol.
• Get enough sleep.
• Socialize.

These steps can reduce the risk of chronic diseases that often lead to high medical expenses.

8. Review Your Medical Bills

Billing errors are quite common when it comes to medical statements. Review your bills and call your provider if you need an explanation of a charge,

9. Take Care of Your Mental Health

Stress, anxiety, and depression can affect physical health and increase healthcare use.

10. Plan Ahead for Long-Term Care

Long-term care is one of the biggest potential expenses in retirement. Start looking into what kind of care you prefer. Many older people are moving in together to reduce costs and stay away from care homes for as long as possible.

While it may be true that retirement may not be what we thought it was going to be with rising costs of housing, food and healthcare, it can still be a wonderful time if you put the right safeguards in place now. You can’t change the past by having saved more, but you can surely change the future and how you enjoy the next chapter of your life.

Let’s Talk:

When did you realize your retirement will be different from your parents’? How have you prepared for those years? Please share what you are doing to reduce medical and healthcare costs and let us know any tips you have for saving money.