Healthcare could cost couples $280K in retirement
According to Fidelity Investments’ latest annual cost estimate, a 65-year-old couple retiring this year will need $280,000 to cover healthcare and medical expenses throughout their retirement. That’s a 2% increase from 2017, and a whopping 75% increase from Fidelity’s first estimate in 2002. Women are projected to need more money in retirement than men because they have longer life expectancies. In Fidelity’s estimate, a man would need $133,000 for healthcare expenses in retirement, while a woman would need about $147,000. “Despite this year’s estimate remaining relatively flat, covering healthcare costs remains one of the most significant, yet unpredictable, aspects of retirement planning,” says Shams Talib, executive vice president and head of Fidelity Benefits Consulting. “It’s important for individuals to educate themselves and take steps while working to ensure they are prepared to address these costs. Otherwise, people risk having to dip into more of their savings than originally anticipated, potentially impacting their overall retirement lifestyle.” Fidelity’s healthcare cost estimate is based on metrics that shift depending on the economy and changes in government regulations. The 2% increase to this year’s estimate was the smallest annual increase since 2014, “which indicates that many of the factors contributing to the estimate, such as prescription out-of-pocket drug expenses and Medicare premiums, have remained relatively flat over the last year,” Fidelity found.
Source/more: Employee Benefit News