A survey by Ipsos for Ryerson University’s National Institute on Ageing asked Canadians their thoughts on the problem of facing longer and more expensive retirements. Three-quarters (75 per cent) nearing or in early retirement said they are concerned about their family’s financial security and well-being. Eighty per cent said their retirement income from sources including their personal registered retirement savings plans, the Canada/Quebec Pension Plan and old-age security benefits won’t be sufficient for a comfortable retirement. ¹
There are so many financial puzzle pieces to think about when you retire you might not know your health benefit plan in retirement is different from the health benefit plan you have while working. When you retire, any extended health care and dental coverage you were receiving through your employer most likely will stop and that can be worrying. How will you pay for healthcare you need from your retirement budget?
You can apply for retirement health coverage
Without a good basic knowledge of retirement health benefits, it can all seem a bit puzzling. Here are some basic facts about the retirement health coverage available:
- Your retirement health insurance provider will provide you with health care benefits as well as administration services, and an app and health portal where you can track activities, read up on health tips and even earn reward points.
- For details about eligible expenses, maximum reimbursements, deductibles and coverage, you can read your health insurance benefit plan booklet or contact SBIS to answer questions on these topics.
- Coverage is available for you, your spouse and any eligible dependents.
What does retirement health insurance cover?
Your health insurance is available to pay for medical services and products that are not covered by your provincial health plan. As we age, our bodies don’t work the way they used to. Consider the healthcare service costs that will impact your retirement finances:
- Doctor visits become more frequent, and we need to take more prescription medications
- Our vision begins to fail, and we will need glasses or corrective lenses
- We may need therapies we never needed before, such as massage or chiropractic services.
- During recovery from minor or major health events, we may need at home support or equipment.
All those costs add up. If you were to pay out of pocket for these services, you would be depleting your retirement fund in short order. The best way to be confident that healthcare costs won’t seriously impact your finances is to purchase a health insurance plan that will meet your needs.
You will pay a monthly premium and can continue the coverage for your entire life. A premium is the amount you pay in exchange for coverage.
There are many plan options, with different premiums, deductibles and eligible services. You will be reimbursed for costs associated with preventive and restorative health services like prescription drugs, dental care, physiotherapy, and homecare.
Enrolling in retirement health coverage has a deadline
You should enrol within 90 days of leaving your employer health insurance plan. This is one of the most important steps in the retirement process because it allows you to get guaranteed coverage regardless of your health. Your retirement health insurance coverage can begin on the 1st of the month after you apply.
Choosing to purchase health insurance means you are keeping an eye on your future retirement finances. It is important to consider how your health needs may change as you age and what kinds of retirement health coverage you may need in the long term. Inflation will impact the cost of your healthcare needs and a retirement health plan can ensure you are ready for a long, healthy and secure retirement future.
Plan for your retirement health insurance now
At SBIS we offer excellent planning resources on retirement health insurance. It can be hard to decide about the right retirement health insurance. Our team can help you make sense of all the options and provide sound guidance you need to make an informed decision.
Contact us today to get a free, no-obligation quote to help you determine how much to set aside in your post-retirement budget for the financial security of a health and dental insurance policy!