Quick Read Medicare surcharges apply when income exceeds $109,000 (single) or $218,000 (married) based on earnings from two years earlier. IRMAA surcharges can raise Medicare Part B premiums from $202.90 to as high as $689.90 per month. Roth IRA contributions and strategic withdrawal timing can help seniors avoid triggering income-based Medicare surcharges. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more he ...

Group 1 - The core issue in retirement planning is not just about replacing income but also preparing for rising healthcare costs, which often outpace general inflation [1] - Healthcare expenses in retirement can create a long-term financial burden, even with Medicare coverage, due to various costs such as premiums, deductibles, and long-term care [2][3] - Common healthcare expenses retirees need to plan for include Medicare Part B premiums, prescription drug costs, and other medical expenses that can accumulate significantly over time [2] Group 2 - Medicare Part B premiums are a significant and unavoidable expense for retirees, covering essential medical services, and can lead to substantial costs over a long retirement [4][5] - In 2026, the standard Medicare Part B premium is projected to be $202.90 per month, with an annual deductible of $283, and these costs tend to rise frequently [5] - Over a 20-year retirement, Part B premiums can total approximately $65,000 to $85,000 per person, with deductibles adding another $7,000 to $10,000 [6] Group 3 - Prescription drug costs are highly variable and can become a major expense as retirees may need to manage multiple medications over time [7] - Healthcare costs are expected to grow at a moderate rate of 3% annually, but can rise as high as 5.5% due to higher medical inflation, which often exceeds general cost increases [8]

For many retirees, selling their home is one of the biggest financial windfalls they’ll see outside of work — especially if they’ve owned it for decades, given the rapid rise in home prices. According to the Joint Center for Housing Studies (JCHS) at Harvard University — which used data from the 2022 Survey of Consumer Finances — median home equity for homeowners age 65 and over was about $250,000 that year. (1) As a result, selling the family home could feel like cashing in a lottery ticket. Must Read ...

Core Insights - A 65-year-old person retiring in 2025 can expect to spend an average of $172,500 on medical and healthcare expenses during retirement, with married couples averaging $345,000, excluding long-term care and other services [1] Group 1: Medicare Coverage and Costs - Medicare provides significant healthcare coverage starting at age 65, but individuals must choose between "original" Medicare and Medicare Advantage plans, along with considering supplemental policies [2] - Medicare premiums are set to increase in 2026, with the standard premium rising to $202.90 per month, a 10% increase from 2025 levels [4] - Prescription drug coverage under Medicare Part D will see a higher deductible of $615 in 2026, up from $590 in 2025, marking a 4% increase, and the out-of-pocket spending cap will rise by 5% from $2,000 to $2,100 [5][6] Group 2: Changes in Medicare Policies - Some Medicare costs are increasing, while certain prescription drug costs may decrease, indicating a mixed trend in healthcare expenses [8] - Medicare Advantage plans will require prior authorizations for certain treatments and procedures, a shift from the previous practice in original Medicare where doctors had more discretion [9]

Core Insights - Healthcare costs, particularly hospital care, are significant expenses that need to be considered in retirement budgeting, especially for Medicare enrollees [1][2] Hospital Care Costs - The inpatient deductible for Medicare Part A increased from $1,676 in 2025 to $1,736 this year, indicating rising costs for hospital admissions [3] - The daily coinsurance rate for hospital stays from days 60 to 90 rose from $419 in 2025 to $434 this year, further adding to the financial burden [4] - For hospital stays exceeding 90 days, the daily rate for lifetime reserve days increased from $838 to $868 this year, highlighting the escalating costs associated with prolonged hospital care [4] Medigap Coverage - Medigap is supplemental insurance that can help cover out-of-pocket expenses for Medicare enrollees, including inpatient hospital deductibles and coinsurance [8] - The optimal time to purchase Medigap is during the initial enrollment window, which lasts six months starting from the month an individual turns 65 and enrolls in Medicare Part B, ensuring coverage for pre-existing conditions and access to the best plan rates [9]

Core Insights - The article discusses the financial considerations for a 64-year-old individual with $2.1 million saved for retirement, focusing on withdrawal strategies and portfolio management to sustain expenses over 25-30 years while addressing taxes, healthcare costs, and market volatility [2]. Withdrawal Strategy - The traditional 4% rule suggests an annual withdrawal of $84,000 from a $2.1 million portfolio, but Morningstar's 2026 research recommends a more conservative starting withdrawal rate of 3.9%, equating to $81,900 annually, due to current market conditions and sequence-of-returns risk [3]. - The portfolio is income-focused, with investments in dividend-paying stocks like Verizon (6.77% yield), Johnson & Johnson (2.49% yield), and Chevron (4.13% yield), generating an estimated annual dividend income of $73,500, leaving a $10,500 gap to meet the 3.9% guideline [4]. Healthcare Costs - Medicare eligibility begins at age 65, with the standard Part B premium rising to $202.90 monthly in 2026, totaling nearly $2,435 annually. Total healthcare costs could range from $8,000 to $12,000 per year, factoring in additional coverage and out-of-pocket expenses [5][8]. Tax Considerations - The tax implications depend on the account structure, with withdrawals from a traditional 401(k) taxed as ordinary income. For married couples filing jointly in 2026, the 12% tax bracket extends to $100,800, while the 22% bracket covers income up to $211,400 [6]. - Strategic withdrawals from taxable accounts before required minimum distributions at age 73 can help manage tax brackets and preserve tax-deferred growth [7]. Strategic Recommendations - Prioritize spending from taxable accounts to manage tax implications effectively, especially before reaching the age for required minimum distributions [7]. - Consider partial Roth conversions during lower-income years to fill the 12% tax bracket without triggering higher rates [7]. - Working an additional year can delay withdrawals and increase Social Security benefits by approximately 8% per year until age 70 [8].

Core Insights - Roth IRAs provide tax-free investment gains and withdrawals, making them an attractive option for retirement savings [1][8] - They do not require minimum distributions during retirement, allowing for continued tax-advantaged growth [2][8] - Roth IRA withdrawals do not count towards modified adjusted gross income (MAGI), potentially lowering Medicare costs for retirees [6][7] Group 1 - Roth IRAs are preferred by some savers for their tax-free benefits compared to traditional IRAs [1] - The absence of required minimum distributions allows for greater flexibility in retirement planning [2] - Roth IRA withdrawals can help avoid income-related monthly adjustment amounts (IRMAAs) on Medicare premiums, which can significantly increase costs for higher earners [5][6] Group 2 - Higher earners may face substantial surcharges on Medicare Part B premiums based on their MAGI, which can be mitigated by utilizing Roth IRAs [5][6] - For instance, a single individual with a $250,000 MAGI could incur a $446.30 IRMAA if a significant portion of their income comes from traditional retirement plan withdrawals, but this does not apply if the funds are in a Roth IRA [7] - Overall, choosing a Roth IRA can provide multiple financial benefits beyond immediate tax savings [9]

Core Insights - Retirement planning often encounters unexpected challenges that can financially impact retirees, as highlighted by Charles Schwab [1] - Being prepared for these surprises can help retirees maintain their financial stability during retirement [1] Hidden Housing Costs - Unexpected home repairs, such as needing a new roof or major plumbing work, are the most common financial surprises for retirees [3] - Experts recommend setting aside 1% to 2% of a home's current value annually for maintenance and repairs, and conducting thorough home inspections to identify potential issues [4] Uncovered Healthcare Costs - Healthcare is the largest expense retirees need to consider, with Medicare not covering all costs, including prescription drugs and certain types of care [6] - Retirees should budget between $450 and $850 monthly for healthcare expenses, including insurance premiums and out-of-pocket costs [8] - Options for managing healthcare costs include adding Medicare Part D for prescriptions, private Medigap insurance, or Medicare Advantage plans that offer additional coverage [7][8]

Core Insights - The U.S. healthcare system, particularly Medicare, is complex and often difficult for retirees and soon-to-be retirees to navigate [1] - Personal finance expert Dave Ramsey provides insights on Medicare that may be beneficial for current and prospective enrollees [2] Medicare Basics - U.S. workers typically become eligible for Medicare at age 65, with those having qualifying disabilities able to enroll earlier [3] Coverage - Original Medicare (Parts A and B) covers various services including doctors' visits, inpatient hospital care, and preventive services, but excludes long-term care, routine physicals, and dentures [4] - Medicare Part D covers prescription medications but has its own limitations; additional coverage can be obtained through Medicare Supplement Insurance (Medigap) or Medicare Advantage Plans (Part C) [5] Enrollment and Costs - Enrollment in Medicare is not mandatory, but most individuals eventually enroll; Part A generally has no premium, while Part B has an average premium of $175.70 per month in 2024, with annual deductibles of $1,676 for Part A and $257 for Part B in 2025 [6] - Part D renews automatically, but it incurs additional costs; Medigap and Part C require manual re-enrollment each year [7] Complexity of the Program - The complexity of Medicare is attributed to its government origins and the extensive information required to understand both Original Medicare and Medicare Advantage plans, which have provider network limitations [8]

Financial Performance - Q3 2025 total revenue was $53.9 million, a decrease of 8% year-over-year (YoY)[7] - Q3 2025 GAAP net loss improved to $31.7 million, compared to a $42.5 million loss a year ago[7] - Q3 2025 adjusted EBITDA was $(34.0) million, compared to $(34.8) million a year ago[7] - Q3 2025 operating cash flow was $(25.3) million, compared to $(29.3) million a year ago[7] - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $75.3 million, and commissions receivable balance was $907.7 million[7] Medicare Segment - Medicare segment revenue declined 6% YoY to $49.9 million, primarily due to lower enrollments[14, 16] - Medicare submissions decreased by 36% YoY, from 55,518 to 40,921[16] - Total acquisition cost per MA-equivalent approved member increased 19% YoY, from $1,256 to $1,489[15, 16] - Medicare segment gross loss improved from $(5.6) million to $(1.2) million[16] Guidance - The company updated its FY 2025 adjusted EBITDA guidance range to $60 million - $80 million and GAAP Net Income to $9 million - $30 million[21] - The updated guidance includes an estimate for positive net adjustment revenue in the range of $40 million to $43 million, compared to the prior range of $29 million to $32 million[20]