3 Ways to Focus on Your Health and Retirement
The rising cost of health care is one of the most serious and complex issues facing society − in fact, it’s likely to be the third greatest expense in retirement1, behind housing and transportation.
But many people are unprepared or uncertain how they’ll deal with health care in retirement.
A survey conducted by Harris Interactive in 20122 showed:
- 45 percent 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 $430,0003. That could mean as much as $10,750 a year per person in out-of-pocket health care expenses.
Prepare today for tomorrow
Taking care of yourself and planning how to address health care expenses when you’re retired are smart strategies.
Begin today with:
1 “Average Annual Expenditures and Characteristics,” Consumer Expenditure Survey, 2009, Bureau of Labor Statistics. (Percentage of total expenditure for 65+ year olds)
2 Harris Interactive Online Survey 2012. Sampling included 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2012 and 625 retired adults ages 65+ having $250,000 or more in household assets. Results were weighted as needed for age, sex, race/ethnicity, education, region, household income and investable assets. Propensity score weighting was also used to adjust for respondents of propensity to be online.
3 Fidelity Consulting Services, 2010. Based on a hypothetical couple retiring in 2010, 65 years or older with average (82 male, 85 female) and longer (92 male, 94 female) life expectancies. Estimates are calculated for "average" Retirees, but may be more or less depending on actual health status, area, and longevity.
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