There are many things to remember when it comes to planning for old age. From planning your pension, to deciding who you want to give health care power of attorney to, the amount of different areas you need to have covered to prepare yourself for old age can seem overwhelming. Here is a list of the most important subjects to be educated on to ensure you are all set up when you reach your golden years.
Pension: A pension plan is set up through your employer and is funded by you and the company. The money is usually invested in bonds or the stock market. This is different than a 401k plan which is classified as a defined contribution plan. Pensions are known as defined benefit plans. Both plans are means of saving for retirement. If you want to have money when you’re older and can’t work, you’ll need a retirement plan of some kind.
Long Term Care: Long term care can refer to any variety of services that need to be set up for someone who cannot care for themselves for long periods of time. This may include individuals with disabilities or chronic illnesses. This usually includes help with feeding, bathing, dressing, going to the bathroom, and household duties as well.
Hospice: This is the kind of care you receive, or a place you go, when you are terminally ill. Hospice care is focused around making your last days as enjoyable as possible and relieving the pain from your symptoms. Hospice is generally covered by Medicare in America.
Estate Planning: This is the process of preparing your estate and everything you own to be divided up as you see fit once you are gone. This includes writing your will, delegating powers of appointment, planning trusts, and delegating powers of attorney as well. If you don’t write a will, your property will go to the courts and any outstanding financial obligations will be deducted. The remaining property will be split up among your next of kin.
Medicare: Medicare is the number one program in our country for providing health insurance to the elderly and young disabled people. It is funded by payroll taxes and other sources and gives health insurance coverage to those who have paid into the system over the years by working. Medicare usually covers 80% of approved medical expenses for those enrolled.
Secondary Insurance: In some cases, patients may have more than one healthcare insurance plan. The secondary insurance plan pays when there is healthcare cost remaining not covered by the primary. For example, a patient may have Medicare as the primary insurance. After Medicare covers 80% of approved medical expenses, the patient is responsible for the remaining 20%. If the patient has a secondary insurance, then the secondary insurance would be billed for the remaining 20%.
Healthcare Power of Attorney: This is the person you name to make medical decisions for you if you are ever unable to speak for yourself.
Growing old is scary. There are so many new challenges we are faced with, that it’s hard to understand them all. Organizations like Green Box Solutions INC are now attempting to provide all the answers that people who want to know about planning for old age are looking for. The key terms discussed in this article give a broad overview of what you can expect to plan for in old age. Contact Green Box today for more information about this non-profit organization.