Become familiar with what Medicare provides. Since Medicare typically covers less than half of participants' health care costs, you will probably need additional insurance. If you are not covered by your former employer's insurance plan, see if you can participate by paying your own way. Also investigate Medigap insurance to supplement Medicare. Unfortunately, few, if any, government or corporate health plans cover lengthy nursing home stays or home care.
Numerous companies offer such policies, however, so it pays to shop around.
When it comes to taking money out of your IRA or Keogh accounts, you need to follow several IRS rules and regulations or risk losing some of your savings. Rules address the amount and timing of your withdrawals, and many are based on your life expectancy. Lump-sum distributions present a range of choices with significant tax implications. To determine the best course of action, you need to consider the amount of the distribution, how soon you need the money, other resources available to you, your age, your health, and your anticipated investment return. Social Security Social Security replaces only a portion of your preretirement income, so you need to be familiar with the various benefit levels and tax regulations affecting them.