The Retirement Expense No One Warned You About
When you’re planning for retirement, you always hear about the big expenses. Healthcare. Taxes. Inflation. Basically, things you can't avoid—like how every restaurant now thinks a sandwich should cost $18.
But there’s a big expense no one is talking about. One that will quietly eat away at your retirement savings like a raccoon digging through your trash at night.
MEDICARE PREMIUMS.
Now, if you’re on Medicare, you might be thinking:
"Wait! My Medicare Advantage plan has no premium!"Or maybe: "My Medicare Supplement is pretty reasonable, and my drug plan is, like, $20 a month!"
Yes. Both true. But we’re not talking about those. We’re talking about Medicare Part B and Part D premiums. The ones that get deducted straight from your Social Security check before you even see it—like a magician making your money disappear, except there’s no applause afterward.
The Numbers (Prepare Yourself)
According to the 2024 Medicare Trustees Report, Medicare premiums are going up a lot. Like, a lot a lot. Here’s the expected annual rate increases:
Part B Premiums
📈 2025 – 2033: 8.2% per year
📈 2034 – 2048: 5.5% per year
📈 2049 – 2098: 4.2% per year
Part D Premiums
📈 2025 – 2033: 6.4% per year
📈 2034 – 2048: 3.6% per year
📈 2049 – 2098: 4.5% per year
And that’s before IRMAA. What’s IRMAA? That’s the extra amount you pay if the IRS decides you make "too much money."
What This Means for You
For a 55-year-old couple today, their projected lifetime Medicare premiums will be...
🚨 $358,734 🚨
And before you ask—
❌ That’s not counting medications.
❌ Not counting long-term care.
❌ Not counting anything except the premium.
That’s like buying a house… except instead of getting a house, you get access to a doctor who tells you to drink more water.
The Mistake Most Advisors Make - not us
We had a couple come to us feeling confident about their retirement plan. Their last advisor told them they’d be fine. And they would have been… if Medicare premiums weren’t a thing.
When we ran the numbers correctly (because, you know, math), turns out—they were going to run out of money. That’s a fun conversation to have:
"Hey, good news! You’re all set until age 81! The bad news? You might live longer than that."
Luckily, we helped them adjust their plan so they wouldn’t have to spend their golden years deciding between medication and air conditioning.
So, What Can You Do?
1️⃣ Have a plan for saving. If your only retirement savings is in a 401(k), it might be time to diversify. Professionally managed investment accounts can generate 80% more income than most 401(k)s.
2️⃣ Review your risk tolerance. A lot of people have too much cash just sitting in a bank. Which is great if you’re saving up to buy a single gallon of milk in 2045. But if you want growth potential, you might need a better strategy.
3️⃣ Make sure your money is working smarter. With Medicare premiums skyrocketing, your retirement savings needs to outpace those increases. Otherwise, you’ll be in a very awkward situation where you technically have money, but all of it is going to keep Medicare happy.
We Can Help
Medicare premiums are a huge problem—but you’re in a place where you can actually do something about it.
We help people plan for these costs so they don’t wake up at 80 years old and realize all their money is going to the government in slow, painful deductions.
If that sounds good to you, let’s talk. Contact your Both Hands FG agent or email c.carlton@BothHandsFG.com to schedule a time to discuss.
Because the best retirement plan is one where you actually get to enjoy retirement.
by: Cory Carlton | CEO & Investment Advisor Representative