Fact Sheet: Costs of Healthcare in Retirement
Retirement planning, for many, conjures thoughts about 401(k) plans, investments, and tax rates. Some will meticulously research the “best places” to retire – giving ample consideration to their desired lifestyle and cost of living. But few consider one of the biggest costs in retirement and a potential hazard to their retirement aspirations: their health.
IRI and HealthView Services estimate the cumulative health care expenses for a healthy 65-year-old man in 2011 was $370,000 and for his female counterpart, $417,000. In 2013, 47 percent of Boomers aged 50-55 had less than $100,000 saved for retirement – revealing a substantial shortfall for a sizable portion of the population nearing retirement age.
The first step toward planning for rising medical costs in retirement is to understand what one can expect from Medicare. While widely known, Medicare remains misunderstood by many Americans. Solely relying on Medicare to cover all your medical expenses through your retirement years will leave you unprepared. Knowing what sort of assistance Medicare can provide will make a big difference in retirement planning.
To help explain Medicare and more steps consumers can take to ensure a financially sound retirement, IRI and the National Retirement Planning Coalition have released a fact sheet on the costs of health care in retirement.
Click below to download a PDF copy of Costs of Health Care in Retirement.
Costs of Healthcare in Retirement