Paying for health care in retirement

If you’re concerned about rising health-care costs in retirement, you’re not alone:

Nearly 3 out of 4 people agree that spiraling health care costs is one of their top fears in retirement¹

2/3 of adults aren't sure or can’t estimate how much they expect to pay for health care costs in retirement¹

By one estimate, an average 65-year-old couple retiring today could spend up to $428,000 on health care costs in retirement²

Medicare, supplemental Medicare plans and private health insurance; costs include premiums, deductibles, copayments and coinsurance
Health care that Medicare and other health insurance may not cover, such as long-term care, dental care, vision care and hearing aids
Prescription medications

Planning now can help you prepare for these expenses and make them feel more manageable.

Consider these ideas.

Factor in Medicare and other health-insurance premiums when setting your retirement savings goal. Monthly premiums account for a significant portion of healthcare spending in retirement. To see current premiums, visit Medicare.gov.
Earmark a portion of your savings for out-of-pocket costs. This includes everything outside of premiums, like deductibles and non-covered care. These less-predictable expenses can account for a significant portion of health-care spending for retirees. Having money reserved to cover them can give you peace of mind.
Take advantage of a Health Savings Account (HSA) if your employer offers one. Money you set aside in an HSA can be used for qualified medical expenses tax-free both now and after you retire.
Take care of yourself. Improving or maintaining your health now could help cut down on medical expenses in the future.