Medicare covers only about half of beneficiaries' total health care costs.1 So what about the other half? Retirees are largely responsible for paying for the rest of these costs on their own.
Upon signing up for Medicare benefits, many people are surprised to learn that there are costs involved with the program. Despite paying into Medicare throughout their careers, retirees may also face monthly premium and cost-sharing provisions for most Medicare programs after they enroll.
Health care is a big-ticket expense for most retirees. Out-of-pocket health care costs for the average 65-year-old couple can reach anywhere between $255,000 and $360,000 over a 20-year retirement.2
If clients are not financially prepared, these costs may put pressure on other aspects of their retirement plans and limit the choices they can make later in life.
How you can help
You can provide clients with a personalized estimate of their retirement health care costs, including long-term care, using the Nationwide Health Care Cost Assessment. With this estimate, you can help clients better understand how health care costs affect their retirement financial plans and will be able develop a plan around their specific needs.