About 10,000 baby boomers will turn 65 today. How many of them are prepared to pay for the health care they will need to enjoy their retirements? ¶ “I don't think people are aware of the need to plan for health coverage in retirement,” says Colleen Callahan, owner of Colleen Callahan Insurance Services in Pleasant Hill, California. “Some are confused by what the employer or union might offer, and others get confused about what is available directly from insurance companies. There also is a lack of understanding of what is available to them before turning 65.”

Those who do understand their needs must get an early start on planning, adds Craig Gussin of Auerbach & Gussin Insurance and Financial Services Inc. in San Diego, who is also vice president of public affairs for the California Association of Health Underwriters.

“You should think about your health insurance three or four months before you plan to retire to determine whether the benefit you are losing is worth retiring now, or if you can reduce your hours and still get benefits,” Gussin says. “For long-term care (LTC) insurance, the younger they are, the lower the cost will be to the consumer and the better chance they will have to qualify for it. I usually suggest that in their mid-50s most people should start to look at LTC insurance.”