According to a recent study by Fidelity, a 65-year-old couple retiring this year will need nearly $275,000 to cover health care costs during their retirement years. This unbelievably large amount is even more pronounced when you consider that it does not include dental, nursing home or other long-term care related costs.
Another sobering fact born out in these health care cost estimates, which Fidelity does annually, is the impact of healthcare inflation over the course of a retiree's lifetime. Healthcare costs have risen by approximately 6% over the last year, and they are expected to continue to rise in the 5-6% range for the foreseeable future. Since 2002 when Fidelity first did this estimate, these costs have risen by approximately 70%.
This is another reason why it is so important for you, our friends and clients, to understand how these health care costs will impact your individual retirement asset and cash flow situations. If you are still in the accumulation phase of life and preparing for retirement in the near future, please make certain that you discuss these issues with us so that we can put together a personally tailored retirement plan projection for you and your family's retirement goals.
We can also assist you with understanding the cost of Medicare Part B premiums, Medicare supplements, prescription drug plans and long-term care insurance options as you plan your retirement. We have a number of specialists that we work with on a collaborative referral basis that can be a valuable resource to assist you as you "Move Forward" towards the retirement you envision.