You’re in an important position to help your clients build understanding and confidence for this critical part of their retirement strategy — and strengthen your relationships as a result. Learn three common Medicare myths that can lead to unexpected costs and be prepared with the facts. Then, consider how a guaranteed income solution can help cover Medicare-related costs and ultimately keep a client’s retirement strategy on track.

Myth #1: Medicare is free

While Part A is free for most people, other Medicare insurance plans require premiums, deductibles and out-of-pocket costs.

Some of the costs associated with Medicare include:

• Part A (hospital insurance): $1,736 hospitalization deductible per 60-day benefit period.²
• Part B (medical insurance): Standard annual premium is $3,396 for 2026.²
• Part D (drug coverage): Could require monthly premiums.

Even after paying premiums and deductibles, Medicare still doesn’t cover all health care costs. In fact:

• Part B: $283 deductible, 20% of coinsurance on health care services.²
• Part D: Covers only a portion of medication costs.

Myth #2: Medicare costs are the same for everyone and they don’t change

While some parts of Medicare have set costs, plans are highly personal. Total expenses will vary from person to person. For example, if your client is considered a higher-income earner, they can expect to pay more for Parts B and D.²

Like other cost-of-living expenses, Medicare expenses continue to rise. For instance:

• Each year, Part D prescription drug plans and Medicare Advantage plans can change premiums, deductibles and covered medications.

Across the board, health care costs are expected to rise significantly over the next 10 years. It’s likely that clients entering retirement today will see their Medicare costs increase over time.

Myth #3: Medicare covers long-term care

Up to 56% of middle-income baby boomers believe Medicare will pay for ongoing long-term care needs in the future.³ The truth is, Medicare doesn’t pay for any long-term care services.

The need for long-term care and the associated costs are impossible to predict, but if these services are needed, they can quickly deplete a client’s retirement savings. A nursing home stay alone costs an average of over $11,000 a month.⁴

With approximately 70% of people turning 65 expected to require some kind of long-term care in their lifetime,⁵ it’s critical to consider this potential need in a client’s retirement strategy.

Offer a solution to cover Medicare costs and gaps

You can help give clients assurance that they can cover Medicare costs — and health care expenses when Medicare falls short — while supporting their retirement income strategy. It’s possible by creating a source of guaranteed income they can’t outlive.

Using an annuity with a lifetime income benefit, a client can count on a guaranteed income stream to help cover Medicare and health care expenses even if the annuity contract value falls to zero. This source of guaranteed income protects against risks, like rising expenses or an unexpected health event, to increase the likelihood their money will last through retirement.

And to support a long-term care strategy, some annuities even offer built-in features that allow clients to increase annual benefit withdrawals if they become confined to a nursing home. And if income from the annuity isn’t always needed, some annuities allow clients to roll over and reserve a certain number of their benefit withdrawals to cover expected or unexpected expenses — like health care costs.

Build confidence through key retirement decisions

We’re here to help you give your clients understanding and confidence that leads to stronger relationships and ultimately more holistic retirement strategies for your clients. Understanding costs is just one part of helping clients approach Medicare decisions. We have several resources to support you and your clients with the Medicare planning process.

As you guide clients through their key retirement decisions, explore additional topics that can influence their strategies:

• Social Security
• Behavioral investing
• Reframing income