WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

Lord Abbett: Why HSAs Matter More Than Ever

Posted by WrapManager's Investment Policy Committee

March 29, 2017

Many experts expect healthcare costs will continue to rise, making it important that advisors help their clients plan ahead.

According to the Kaiser Family Foundation, health care has become somewhat less affordable, even among those with health insurance. Since 2015, larger shares of people with health insurance say they have a difficult time affording their healthcare costs: from 27% to 37% for premiums; 34% to 43% for deductibles; and from 24% to 31% for copays and prescription drugs.

Some experts estimate that a 65-year-old couple who retired in 2016 will need $260,000 to cover just healthcare costs in their golden years—6% more than the previous year's estimate of $245,000. That’s the highest estimate since such projections started in 2002, and chances are repealing and replacing the Affordable Care Act, not to mention the high cost of pharmaceuticals, could push retiree healthcare costs even higher. All of which highlights the need for advisors to discuss with clients the flexibility and power of Health Savings Accounts (HSAs).

Read on for a summary of their analysis, or view the entire document here.

[+] Read More

Retirement Planning Healthcare in Retirement Investment Plan Lord Abbett Company Llc Money Manager Commentary

Spending in Retirement: 4 Factors to Consider

December 21, 2016
When you encounter articles focused on retirement planning, the subject matter is generally about how to invest—what strategies are good ... [+] Read More

Medicare Changes and Your Retirement Plan

August 26, 2015
Back in 2013, we wrote about the differences between Medicare Parts A and B, as well as supplementary coverage options to help readers with ... [+] Read More

Understanding the Benefits and Risks of Long-Term Care Insurance

July 2, 2014
Research shows that at least 70 percent of people over 65 will need long-term care services and support at some point in their lifetime.1 ... [+] Read More

Relocating for Retirement? Health Care Costs Could Matter

April 24, 2014
If you’re thinking about moving to a different state, it’s important to consider how your health care costs could change depending on where ... [+] Read More

Investment Plans Should Factor-In Rising Health Care Costs

March 5, 2014
Total health care spending is expected to reach $4.8 trillion in 2021, up from $2.6 trillion in 2010 and $75 billion in 1970. As consumers ... [+] Read More

What Are the Differences Between Medigap and Medicare Advantage?

September 27, 2013
What is Medigap? Medigap is private insurance you can purchase to help cover some or most of your out-of-pocket expenses associated with ... [+] Read More

What’s the Difference Between Traditional Medicare and Medicare Parts C and D?

September 23, 2013
In our previous post on Medicare Parts A and B, we outlined some of the basic features of Traditional Medicare, which provides hospital and ... [+] Read More

How Does Traditional Medicare Factor Into Your Healthcare Coverage in Retirement?

September 18, 2013
Traditional Medicare is another name for Medicare Parts A and B. Most people are automatically enrolled in Parts A and B and receive their ... [+] Read More

Understanding Your Options for Healthcare Coverage in Retirement

September 17, 2013
The Basics of Medicare Parts A, B, C, D, and Medigap As you enter retirement or approach the age of 65, there are a lot of questions about ... [+] Read More