Plan on spending $300,000 for healthcare in retirement
This year’s estimate marks a new milestone high, up 30% from 10 years ago when the amount was $230,000, but just 1.7% from 2020 ($295,000) as health care inflation has remained relatively flat over the last few years. Fidelity began measuring in 2002 to build greater awareness of estimated health care costs and the importance of starting to plan and save early to meet those anticipated expenses. Since then, the estimate has risen a total of 88% (from $160,000). Fidelity’s estimate assumes both members of the couple are enrolled in traditional Medicare Parts A and B, along with a Part D drug plan.
According to Fidelity, a 65-year old, opposite-gender couple retiring this year can expect to spend $300,000 in health care and medical expenses throughout retirement. For single retirees, the 2021 estimate is $157,000 for women and $143,000 for men.
Fidelity’s annual release of health care costs in retirement provides an opportunity to remind clients that:
- Health care costs are going up.
- Clients will probably spend more on health care in retirement than they realize, even with Medicare.
- The time to start saving for health care expenses in retirement is now (whatever their age). Read more here: https://www.savvymedicare.net/LinkTrack.aspx?u=https%3a%2f%2fnewsroom.fidelity.com%2fpress-releases%2fnews-details%2f2021%2fFidelitys-20th-Annual-Retiree-Health-Care-Cost-Estimate-Hits-New-High-A-Couple-Retiring-Today-Will-Need-300000-to-Cover-Medical-Expenses-an-88-Increase-Since-2002%2fdefault.aspx