The rising cost of health care is one of the most serious and complex issues facing society. It’s likely to be the third greatest expense in retirement,1 behind housing and transportation. But many people remain unprepared or uncertain how they’ll deal with health care in retirement.
A survey conducted by Harris Interactive in 20122 showed:
- 45% of Americans 55 and older expect health care to be their biggest expense throughout retirement
- $5,621 was the amount participants expect to spend on health care each year on average
Reality could be much different according to a 2010 study that estimates out-of-pocket health care expense for a 65-year-old couple retiring today and living for 20 years will range from $250,000 to $430,000.3 That could mean as much as $10,750 a year per person in out-of-pocket health care expenses.
Taking care of yourself and planning how to address future health care expenses are smart strategies.