Study Reveals How Retirees View Costs and Medicare
The rising cost of health care is one of the most serious and complex issues facing society. It's often the fourth greatest expense in retirement, but for many people it can be the second-largest expense in retirement next to housing.1 But many people remain unprepared or uncertain how they’ll deal with health care in retirement.
46% of affluent adults expect the cost of health care to be the biggest expense through retirement.3
On average, adults believe they will need retirement funds for themselves for 19 years, with only 11% saying they will need retirement funds for more than 25 years.
Reality could be much different according to a 2015 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 $259,000-$392,000.4 That could mean as much as $9,800 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.