What happens to your benefits when you retire?
If you’re approaching retirement, an important question you may want to ask your employer is “Will I have health and dental benefits when I retire?”.
While some retirees may be fortunate enough to have healthcare benefits continue into retirement, most won’t.
Can you keep your health insurance when you retire?
Most people won’t have an employer-sponsored healthcare benefits plan available to them in retirement.¹
A few may be able to keep their plans by paying the same as they are now.
A few will be able to keep their plan by paying more for their insurance.
And a few will be able to join a separate “rollover” plan through their employer or association within a short time after they retire. With this type of plan, you won’t have to answer medical questions or have a medical exam to qualify. The cost of insurance is based on your age, and you can choose the coverage package you need from basic to more enhanced.
What’s covered by your provincial/territorial health insurance?
Provinces provide certain services and supplies for eligible residents, such as:
- Doctor’s visits
- Emergency room treatment
- Hospital stays
- Hospital accommodation and food
- Prescription drugs in hospitals
- Hospital dental surgery
Is personal health insurance worth it for retirees?
If your health and dental benefits don’t fall into one of the situations described above, you can also think about personal health insurance. But is it worth it? It depends on:
Where you live
Because what’s covered by provincial/territorial health care plans varies by province, what you might get in Ontario, could cost you hundreds of dollars in Nova Scotia. Get to know what’s covered in the province where you live.
Your health
If you currently have expensive prescriptions or rely on medical equipment, and those costs aren’t covered under your provincial/territorial plan, personal health insurance may be worth it.
Your mindset
For some people the benefits of knowing they’re covered if something unexpected happens to their health outweighs the cost of insurance.
Who gets personal health insurance?
Generally, the people who purchase personal health insurance value the group benefits they had when they were working.
William and Maureen are retiring soon and have always had health insurance. They take prescription medications for ongoing medical conditions, know they’re going to need expensive dental care in the future and use a lot of paramedical services such as massage or physiotherapy. They also plan to vacation out of the country.
They know the government won’t cover all their healthcare costs, and that their healthcare costs will be more than the premiums for a personal healthcare plan. They also won’t want to worry about qualifying for coverage or purchasing travel insurance separately.
What is the average cost of personal health insurance for retirees?
It can range from just over $100 to over $400 per month. The cost will vary depending on your age, where you live and how much coverage you need.
How to get personal insurance
There are great options available for retirees.