Healthcare Costs For Retirees
A 65-year-old couple with median prescription drug expenses will need $227,000 to have a 75 percent chance of covering their Medicare premiums and other out-of pocket medical costs after retirement in 2012, according to a recent Employee Benefit Research Institute report. Retired couples who want a 90 percent chance of being able to pay for their out-of-pocket medical costs will need to have $283,000 upon retirement in 2012, down from $287,000 in 2011. Retirees who are willing to live with a 50 percent chance of covering their health care costs would need $163,000.
A couple retiring in 2012 with prescription drug expenses in the 90th percentile is estimated to need $317,000 to cover out-of-pocket medical costs. But retirees who use a lot of prescription drugs also get more benefits from the Affordable Care Act. A 2012 Fidelity Investments study came up with a similarly large estimate of retiree health costs. Fidelity Investments calculated that a 65-year-old couple retiring would need $240,000 to pay for medical costs throughout retirement. (USNews)
There is some good news on the horizon here when we are talking about all this money you need to set aside for healthcare. With proper planning, you don’t have to necessarily earn the entire amount yourself, there are guaranteed products out there that can help you achieve your financial and retirement goals. Be smart when looking, and make sure the calculations for income is correct.