Will You Be Financially Prepared for Healthcare Costs in Retirement?
The number one concern for retires 55 years of age and older, with no surprise, is running out of money in retirement. The second biggest concern is the rising costs of healthcare in retirement. Fidelity Investments came out with a recent study which shares that the average 65-year-old married couple looking to retire in 2016 is likely to spend $245,000 on medical care costs not covered by Medicare. This number has increased by $25,000 compared to last year and only applies to traditional healthcare expenditures, and does not include the costs of nursing homes or long-term care expenses. Generally speaking, Medicare is not a comprehensive healthcare plan in retirement and should not be solely replied upon as such. As you may know, Medicare does not cover dental or vision plans either and you must pay for additional coverage. It is important to note that the higher your income is the more expensive coverage can be.
With health-related costs rising by twice the rate of overall inflation, now may be the right time to look at planning for your future. Do you feel financially prepared for healthcare costs in retirement? If you have concerns or questions, I recommend coming in to meet with one of our advisors to go through our complimentary Complete Planning Review process. You are welcome to give our office a call at (775) 853-9033.