Even Wealthy Americans Are Worried About Healthcare in Retirement
In fact, 73% of wealthy older adults say that out-of-control healthcare costs rank highly among their greatest retirement-related fears. That's the latest from a
Of course, not knowing what to expect expensewise can clearly make for a stressful situation. So if you're eager to minimize some of that anxiety, it pays to read up on healthcare costs in retirement and save for them accordingly.
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What will you spend on healthcare in retirement?
It's difficult to nail down your healthcare costs in retirement because you don't know what sort of medical issues you might face as you age. But according to HealthView Services, a cost-projection software provider, the average 65-year-old man who lives an average lifespan will spend
Meanwhile, the typical retirement in the
Of course, this is an imperfect calculation because the main reason women are expected to spend more than men on healthcare in retirement is that they typically live longer. Our figures, meanwhile, assume an 18-year retirement across the board. Still, they should help shed some light on what healthcare might cost for the typical senior.
What's interesting is that in the above-referenced study, respondents estimated their own annual healthcare costs at
The projections above from HealthView, however, do not include long-term care costs, and those can be astronomical. The average assisted living facility in the country, for instance, costs
Saving to pay for your medical needs
The above figures underscore the importance of saving to cover your healthcare costs in retirement, so if you're behind in that regard, it's time to ramp up. The good news is that if you're 50 or over, you get to contribute up to
But saving money isn't the only thing you should do to address the giant expense that is healthcare in retirement. You also should read up on what Medicare will and will not cover to determine whether it pays for you to buy supplemental insurance or enroll in a Medicare Advantage plan. It also pays to look into long-term care insurance during your 50s or 60s, and the earlier you do, the more likely you are to not only get approved, but snag a discount on your premiums. Having a policy to defray the aforementioned costs could spell the difference between managing those expenses and having them ruin you financially.
Whether you're wealthy or not, healthcare in retirement is something that should be on your radar, especially as your career draws closer to an end. Read up on the costs you'll be facing, get the right insurance, and save as best as you can. That way, you'll be ready for whatever expenses inevitably lie ahead.
The
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "
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