Fidelity estimates health care costs in retirement, up 2% from last year and 75% since its 2002 estimate of $160,000. As it is most important issues regarding health care cost at the old age after retirement.
If you’re a 65-year-old couple retiring this year you’ll need even more than that to cover health care and medical expenses throughout retirement, according to Fidelity Investments’ annual cost estimate.
The cost for care for males in retirement is an estimated $133,000, while the tab for women, who tend to live longer than men, is $147,000.
“Covering health care costs remains one of the most significant, yet unpredictable, aspects of retirement planning,” said Shams Talib, executive vice president and head of Fidelity Benefits Consulting.
“It’s important for individuals to educate themselves. Otherwise, people risk having to dip into more of their savings than originally anticipated.”
Fidelity recently polled 1,000 people between 50 and 64 who have retired in the past three years. It was found that while almost all had some form of health insurance, 36% were paying $500 a month or more in health care premiums.
Health insurance, policies are most useful after retirement they are only way because your every income source might be stopped.
When early retirees were asked how they were paying for out-of-pocket premiums, co-pays and insurance plan deductibles, about half 49% said they were “dipping into personal savings,” 24% were relying on Social Security income and 15% used retirement savings.