Remember: Add Health Care Costs to Your Retirement Plan
One in four retirees makes health care costs the number one reason to feel “mentally or emotionally stressed out about preparing for retirement,” according to the Employee Benefit Research Institute’s (EBRI) 2017 Retirement Confidence Survey. An analysis from Fidelity Investments estimates you may need about $260,000 over the course of your retirement just to pay for Medicare premiums, prescription drugs, Medicare co-payments, and
deductibles. (This estimate is for a couple, 65 years old in 2017 with a lifespan of 87 years for the female, and 85 years for the male). On top of that estimate, it must be added the costs not covered by regular Medicare like most dental work, hearing aids, eye exams, and long-term care. The estimated health care costs for retirement plus the non-covered cost could add up to $400,000 during an individual’s retirement life span.
Remember to calculate your health care costs into your retirement plan. According to HealthView Services, for some retiree’s health care inflation could increase your projected monthly budgets as well as better health during your retirement it could add additional years to your plan by living longer.
Less than one in four people who responded to the 2017 EBRI survey have searched for a financial advisor. You as a consumer should seek out the advice
from Ashok Sanghavi. He is an expert CPA and Certified Financial Planner that can guide you on the right path for your specific circumstances.