Big Bucks in Retirement

Money_CashThey are supposed to be your “golden years.” But a new report suggests retirees will have to dig deep to cover the cost of health care……really deep.

From Forbes.com:

A 65-year-old couple retiring this year will need $275,000 to cover healthcare expenses throughout retirement, according to the latest Fidelity estimate. That’s up 6% from last year’s estimate of $260,000, and up more than 70% from the 2002 estimate of $160,000.

The $275,000 per couple includes Medicare premiums, Medicare copayments and deductibles and prescription drug out-of-pocket expenses (it does not include long-term care costs at home or in a nursing home, over-the-counter medications, dental—or cosmetic work).

“It’s critical that people include health care as a significant part of their retirement plan,” said Adam Stavisky, senior vice president, Fidelity Benefits Consulting, in a release with the new numbers.

According to Bloomberg.com, “What’s really sobering is the impact of inflation on Fidelity’s retiree health-care cost estimates over the years. From 2002, when Fidelity first did an estimate, to its latest projection, the number is up 70 percent.”“It’s the power of compounding,” Stavisky said. “It’s great for investing and brutal for health-care costs.”

CNN.com added:

Health care won’t be your only expense in retirement, but it will likely be the biggest. To get a more personal estimate of your health care costs in retirement, try using a calculator like this one from HealthView or this one from AARP.

aarpThe health care cost calculators are designed to provide a rough cost estimate based on a number of variables such as your height, weight, gender, and state. Users can add in various health conditions to see how much they might add to projected health-care costs in retirement, or subtract from them if, for instance, an overweight person slimmed down.

MarketWatch.com put together a short video that points how many people are choosing to continue working part or full time in their older years…..often because they are not confident about reaching their retirement goals. Click here or on the picture below to watch it.

retirement

On the bright side, as Health View Services pointed out, “Americans are not powerless when it comes to reducing costs.” And one of the best investments anyone can make is to work at staying healthy!

Share your thoughts on this new report and what it means to the people of our state. Also, let us know how you think Arizonans can take a bite out of that rising health care estimate. Generating meaningful conversations around the health care issues affecting the people of our state is another way we are working toward our long-term goal of one day making Arizona the Healthiest State in the Nation!

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