The Retirement Storm: How to Face Rising Healthcare and Long-Term Care Costs

Retirement planning is about more than numbers on a page, it’s about creating peace of mind and freedom in the years ahead. In this episode of The Own Your Retirement Show, hosts Josh Bretl and Mark Elliott explore Social Security, Medicare, healthcare costs, and long-term care in a way that makes complicated topics surprisingly simple. Along the way, they mix in stories, humor, and practical advice to help you think differently about what retirement really takes.

Why Social Security Isn’t Just a Calculator

Too many people think of Social Security as a simple math problem: take it early and get less, or delay until 70 and get more. But as Josh explains, the decision is far more complex. Your health, your spouse’s health, your other assets, and even your tax strategy all shape the right timing for your benefits. It’s not just about maximizing one number, it’s about integrating Social Security into your entire retirement plan.

One critical piece that surprises many retirees is how Social Security decisions can impact taxes. In fact, depending on how your income is structured, you might pay little to no taxes on your benefits, or you could get hit with the “tax torpedo,” where Required Minimum Distributions (RMDs) suddenly force more of your Social Security into taxable territory.

The Hidden Costs of Healthcare

Medical bills are the leading cause of bankruptcies in the U.S., and healthcare is one of the biggest line items retirees need to plan for. Fidelity estimates that a healthy 65-year-old couple will spend an average of $315,000 out of pocket on healthcare in retirement, and that doesn’t even include long-term care. Medicare helps, but it’s not free and it doesn’t cover everything.

Josh and Mark highlight common blind spots retirees face:

• Medicare premiums and surcharges, like IRMAA, that increase costs for higher-income retirees
• Expenses Medicare won’t cover, such as dental, vision, hearing, and overseas care
• The reality that healthcare inflation has historically outpaced general inflation

These surprises can quickly add up, making it critical to plan ahead.

Facing the Long-Term Care Question

Seventy percent of retirees over age 65 will need some form of long-term care. Yet it’s one of the most overlooked parts of retirement planning. Josh shares real stories of clients who purchased policies decades ago and later realized how valuable they were when dementia or unexpected medical issues struck.

The good news? Today’s options go beyond the old “use it or lose it” policies. Asset-based care and hybrid insurance products can allow retirees to earmark funds for long-term care while still leaving a legacy if they don’t end up needing it.

Why Planning Matters—For You and Your Loved Ones

Healthcare planning isn’t just about dollars—it’s about protecting your spouse, children, or caregivers from unnecessary stress. For widows, widowers, or single retirees, having a clear plan for both finances and care preferences can prevent difficult decisions from falling on loved ones at the worst possible time.

Ultimately, good planning helps ensure that financial worries don’t add to the emotional challenges of retirement. As Josh puts it, “Recovering emotionally is hard enough. Recovering financially at the same time is even harder.”

Final Thoughts

Retirement is supposed to be the best part of your life, but that only happens when you’re prepared for both the fun and the challenges. Whether it’s choosing the right time to claim Social Security, planning for Medicare costs, or protecting yourself against long-term care expenses, the team at FSR Wealth Strategies can help you take ownership of your future.

📞 Ready to talk? Call (630) 478-9599 to schedule your complimentary 15-minute call with an FSR advisor.