Health Care Costs in Retirement: A Big Shock
May 4th, 2015 by beasleyferber
Most seniors have Medicare Supplement policies. They think that these policies, combined with their Medicare coverage, will pay for most of their health care costs in retirement. Think again. A very interesting report from Fidelity Investments is a shocker. According to the report, a 65-year-old couple retiring this year should plan on spending some $220,000 to cover their health care needs — and this figure does not even include the cost of long-term care! Interestingly, when you retire can have a significant effect on these costs. Those who retire at 62, rather than the traditional 65, should plan on spending an extra $17,000 per year, largely due to paying health insurance premiums before Medicare kicks in. On the other hand, those who retire at 67 can reduce their annual costs by about $10,000 per year. In addition to presenting these startling facts, the study points out that health care costs, in addition to your expected Social Security benefit, should play a significant factor in deciding when to retire.