Nursing home care costs about $37,000 annually while at the same time the costs of home care and assisted living escalate. While it is true that people today are living longer notwithstanding all that talk of intensifying pollution, it is also a fact that the probability of requiring some kind of long-term care increases as you get older. A retiree obviously wants to (or has to) stay healthy all through the Golden Years and may therefore start paying more visits to the doctor for preventive tests or routine checkups (whether or not he/she is paranoid). If your healthcare begins to decline (and it is expected) once you retire, you are the one who will have to foot all the bills for costly prescription drugs and any medical treatment. Since healthcare is a priority at any age, it is best to plan well in advance, how you're going to meet all those costs to maintain sound health in mind, body (and soul)!

      First of all, get it straight into your little head: Relying on your savings is risky and works well only as a short-term strategy (in times of a health emergency, for example) - unless you are ultra rich, of course, and are reading about retirement planning just to mock the rest or to feel grateful. The average person, however, has to seriously think and carefully plan when it comes to health insurance.

      If you are at least 65 years of age, you don't have to worry as much about healthcare costs because you may very well be eligible for certain health benefits from Medicare: a federal health insurance program. But if you have retired before age 65, we must say that you're a little intellectually challenged, because now you have to find a way to pay for your healthcare. You might have noticed, but your selfish employer may not have offered you extensive health insurance coverage like those bighearted employers in better companies sometimes offer their retiring employees. Guess what: you're stuck in a sticky situation - and the end is near. Wow, we can really be morbid! But wait...you may also buy a private health insurance policy or just extend your employer-sponsored coverage through COBRA! Ta Dah!

      Bear in mind that Medicare will never pay for long-term care even if you are 65. So if you can't pay for your healthcare out of your own (hopefully deep) pockets you will have to invest in long-term care insurance (LTCI) which is slightly expensive. But if your assets and/or income are quite low, you may qualify for Medicaid! (You see, you really can live your life to the full with a healthy heart and peace of mind).

      Now if you're receiving Social Security benefits, you don't even have to apply for Medicare because you are already enrolled. Medicare coverage consists of two parts. Medicare Part A is hospital insurance that can help you pay for your home health care, hospice care, and inpatient hospital care. This Part of Medicare is premium-free for most retirees. On the other hand, you have to decide whether you want to purchase Medicare Part B (medical insurance) as well. This Part helps cover other medical care such as physician care, laboratory tests, and physical therapy. And if you wish to enroll in a managed care plan or a private fee-for-service plan, you may further purchase Medicare Part C (Medicare Advantage). This last Part is a program allowing you to choose among several types of health-care plans, and may even cover some of your dental care or eye care expenses, as an example.

      To help cover what Medicare won't and thereby reduce your out-of-pocket healthcare expenses, purchase a supplemental Medigap insurance policy within six months of enrolling in Medicare Part B at age 65 or older. During this time you may buy a Medigap policy of your choice (out of 10 available policies) from any private insurance company, paying only the standard price.

      After offering all that sage advice all we can say is that make the right choices, and try to stay healthy so as to reduce your medical bills in your Golden Years. Yes, that means no smoking!