Recent data shows that baby boomers are far from saving enough money to be able to provide health insurance for themselves when retirement will come. Many households struggle with paying current bills and making ends meet, therefore saving money is out of the question. Is low cost health insurance a dream?
There’s Not Enough Money, But What Shall We Do About Our Health?
Under these circumstances, all these people have or will have problems in paying for proper healthcare. Even if they are insured, they usually go for low cost health insurance plans which leave them uncovered in areas like dental care or medications. Co-pays and hospital deductibles are also a problem, as many of these middle-aged and soon-to-retire people earn just enough to get by.
Although the recommended amount that a household should ideally save each month is 10% of the total income, retirement savings are nowhere near this percentage for most of the people in this age category. Combine this fact with low cost health insurance becoming the preferred choice of many and you get a recipe for disaster: these people should do their best to stay in good health for as long as they can, because otherwise they will face a fast and irreversible degradation of their health, since they will have financial troubles in seeking for appropriate medical care. There’s nobody who can cover their co-pays, so their only solution will be not to go to the doctor when they are in early stages of various medical conditions. Preventative medicine is out of the question as well, as when you only have enough money to survive, prevention is definitely not one of your priorities.
What Are Baby Boomers Spending Their Money On?
Obviously, 410k and IRA retirement plans failed to fill in the gaps left by the elimination of corporate pensions. Nonetheless, some believe this is not the real reason why baby boomers are far from being ready to retire. They blame it on the fact that most people belonging to this generation simply don’t save enough.
The truth is that while salaries didn’t record any spectacular increases over the past ten years, people are spending more on education, mortgage debt and on supporting their adult children. Sad but true, many people from the very young generation of adults need support from their parents in order to be able to survive. A study shows that more than half of parents are helping their adult children financially.
Under these circumstances, cuts need to be made in order to cover all expenses. Such cuts have been recorded in entertainment, in savings and in choosing low cost health insurance instead of plans that offer more comprehensive medical coverage.
The recession has obviously affected many families, leaving them in the impossibility to make progress in rebuilding their finances to a level where savings become again a monthly habit. The trend is still to save less from year to year and if nothing significant happens with the society, we are soon going to face a huge problem.
Low cost health insurance may be a dream for many families, but that doesn’t mean you can’t get significant savings on your medical and dental services with a non-insurance option!
Supplemental health and dental insurance can be a great way to reduce your medical costs while preserving quality benefits.
While not insurance, discount health plans and discount dental plans can be very effective in making up gaps in your health care coverage. To check out our discount health plans, click here.
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AmeriPlan discount health and dental plans are designed to save you money while providing the health and dental care you and your family needs. Get started now and you’ll be amazed at the level of medical and dental services and the low cost.