What to ask your financial advisor about Medicare

Each fall, Medicare Open Enrollment gives retirees and those approaching retirement the opportunity to review and adjust their coverage. From October 15 through December 7, you can make changes that may affect your health care costs and coverage for the coming year.

While Medicare may seem straightforward at first glance, it often plays a larger role in your overall retirement strategy than many expect. Before the December 7th deadline, it’s wise to sit down with your financial advisor to make sure your health care and financial plans work hand in hand.

Here are some key questions to ask during that conversation.

1. How will my Medicare choices affect my retirement income plan?

Your financial advisor can help you understand how premiums, deductibles, and out-of-pocket costs will fit into your retirement income strategy. For example, choosing between Original Medicare and a Medicare Advantage Plan may impact how predictable your health care expenses will be each year.

2. Will my income affect my Medicare premiums?

Medicare premiums are tied to your Modified Adjusted Gross Income (MAGI) through something called the Income-Related Monthly Adjustment Amount (IRMAA). Your financial advisor can help you evaluate whether upcoming income changes—such as Required Minimum Distributions (RMDs) or capital gains—might increase your premiums, and if there are strategies to help manage that impact.

3. How should I plan for future health care costs?

Even with Medicare coverage, retirees often face out-of-pocket medical expenses, prescription drug costs, and potential long-term care needs. Your financial advisor can help you estimate these costs and incorporate them into your retirement projections, so they don’t come as a surprise.

4. Should I keep my employer coverage or transition fully to Medicare?

If you’re still working or covered by a spouse’s employer plan, your advisor can help you evaluate the pros and cons of staying on that plan versus moving entirely to Medicare. The right timing depends on factors such as employer size, premium costs, and your broader financial goals.

The bottom line

Medicare decisions shouldn’t happen in isolation; they’re an important part of your overall financial plan. By discussing these questions with your financial advisor before December 7th, you can make informed choices that support your retirement goals.

If you live in Kansas City area, now is the perfect time to schedule that conversation and review your Medicare options before the enrollment window closes.