National Post (National Edition)
Getting ready to retire?
The right plancanhelp ensure you’re ready forunexpected costs
A recent survey found that eight million Canadians are rethinking their retirement plans due to the coronavirus pandemic.
Health insurance needs post-retirement has been another area Canadians are concerned about, says Nina Desai, AVP, National Client Management and Direct Distribution at Manulife.
“We can’t say enough about the value of being prepared,” says Desai. “We often think of retirement as a peaceful time, and we want to help ensure our customers have the financial security to enjoy theirs.”
Desai, who has decades of experience helping people reach their retirement goals, says most of us have a natural tendency to focus on the more exciting parts of retired life. Health insurance often doesn’t rate on this list.
“People think it’s going to be very laid back,” she says. “There’s no more commute or waking up at 5:30. You don’t have to worry about job security.
“But there are certain unpleasant surprises that can come up.”
These range from oneoff expenses, such as physiotherapy or a major dental procedure, to ongoing assistance with chronic pain or other long-term conditions. Depending on your circumstances, these bolts from the blue can radically remake your retirement.
That is why Desai is so keen on the power of planning ahead when it comes to your health post-retirement.
Here are three of her top tips.
We can’t say enough about the value of being prepared.
1: KNOWYOUR NEEDS
The foundation of any good plan is good information. Desai recommends doing some thorough research into your health.
That means looking at your personal health history, including any current chronic conditions you’re dealing with. It also means investigating your family’s medical history.
No one can predict the future, but this information can provide valuable clues about what might be waiting for you in your golden years, when the need for health care tends to be highest.
2: ASSESS YOUR
FINANCES
The next step is to assess your current financial situation and trajectory. This begins with thinking about your lifestyle when you’re no longer working.
“Do you want to work part-time? Do you want to travel? Do you want to join a country club and golf all the time? People need to consider these questions,” she says.
Then you need to figure out if your income when you’re retired will finance this lifestyle and leave enough to cover your healthcare costs.
Doing a thorough job of this is much easier than it was ten years ago, Desai says. There’s lots of highquality information available for free online to help you get started, along with useful tools like calculators. (She recommends the one on CoverMe.com)
But when the rubber meets the road, Desai says, there’s no substitute for the perspective of a seasoned professional.
“People are generally more knowledgeable about financial planning than they used to be,” she says, “but sometimes working with a financial advisor can add a lot of value to ensure you stay on track with your goals.”
The good news is that financial advisors are much more accessible than they used to be.
“You should ideally check in with an advisor a few times leading up to your retirement,” says Desai. “You want to make sure you have enough for your lifestyle and your health.”
One pitfall that Desai
sees missed too often is the impact of leaving a group benefits plan without coverage to rely on.
“If you have a group benefits plan, you might be used to not thinking about it,” she says. “But those often terminate within a year of leaving your employment, so it’s important to consider your future healthcare expenses at that point in time.”
3: PLAN FOR THE GAPS
It’s not unlikely that your planning exercises in step two will make you aware of a gap between your retirement income and likely future expenses—especially if you’ve made a realistic projection about your healthcare expenses post-retirement. That’s where health plans come in.
“Insurance plans can make sure you don’t have to pay out of pocket for unexpected expenses,” says Desai, “and there’s a range for every budget.”
Of course, no one likes paying for something they don’t use. That’s why Desai
recommends Manulife CoverMe health and dental plans available at CoverMe. com, which are highly customizable.
“There’s so much about this that can vary,” she says. “The good news is we have a broad product shelf of plans that you can choose from to suit whatever your healthcare needs are.”
One particularly popular plan for those approaching retirement is Manulife FollowMe health and dental insurance plans.
“If you’re 90 days away from retirement or you retired up to 90 days ago, you can apply for health and dental coverage with this plan*,” Desai says. “It’s quite extensive, and you can do it without having to go through underwriting, meaning guaranteed acceptance and no medical questions asked for most cases.”