There are many things to look into when heading down the final road to retirement. One is to figure out is how much money will be needed to cover all of your medical after you retire.
While these numbers go up and down depending on a number of factors, the cost of medical for a retired couple is running very high. According to Today.com, $220,000 is how much the average 65-year-old couple will spend on medical expenses throughout their retirement. They are pulling these latest estimates from Fidelity Investments.
If you are trying to retire early, then be prepared to put away an even bigger chunk of money for medical expenses. The average couple hoping to retire at 55 will spend $744,800 on out-of-pocket health costs if they both live to age 85, according to a separate study released Wednesday by the Society of Actuaries.
That’s if you’re relatively healthy later in life. Those averages don’t include the cost of treating chronic diseases like cancer or heart disease.
“People with those conditions spend about twice what the aver age population does,” said Dale Yamamoto, the author to the Society of Actuaries study. “So you need to take these numbers and double them.”
These latest estimates are really hitting retirees hard, as many of them just didn’t realize the staggering amount of money that would be needed to cover health care costs. As stated above, these numbers could fluctuate down some, depending on the situation. However, they could also go up, which leads many to believe that they will never be able to afford proper health care during their retirement years.
“It’s more difficult today to try and give people meaningful guidance because the individual insurance market is going to change dramatically,” said Sunit Patel, senior vice president of Fidelity’s benefits consulting group. “But we still expect the (retirement health cost) number to be significant.”
Are you prepared for retirement medical costs? You and your spouse need to take a long look at your situation, and make sure you are squared away for medical costs during retirement.