Planning for Your Future Health
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By Bob Veres with Insider Information
When you create your retirement plan and look at how much you expect to spend on food, shelter, golf, cruises, and restaurants, what do you estimate you will spend on medical and healthcare services?
Every year, the Milliman insurance industry consulting firm issues a report that estimates the average cost of health insurance and co-pays across the population of Americans. The most recent study looked at couples who are assumed to live to age 88 and 90, taking into account out-of-pocket expenses along with premiums for a Medicare Part D plan and Medicare Supplement Plan G, assuming that medical costs overall will rise 4.9% year over year.
The result? A healthy 65-year-old couple retiring in 2020 would be projected to spend $351,000 in today’s dollars on healthcare over their lifetime, whereas a healthy 45-year-old couple would be projected to spend $505,000 in today’s dollars.
It is important to note that this is an average, and there are many factors that go into determining a persons’ own cost. For example, people who experience significant health conditions will have higher costs, and for people who manage to stay healthy without requiring extensive medical care or hospitalization, the costs could be much lower. Other important factors may include; geographical location, tobacco use, or pre-existing conditions to name a few.
These average expenses might come as an unwelcomed shock to some, potentially causing some doubt in their retirement outlook. Proper planning and savings techniques, along with a healthy balanced lifestyle can help manage these future costs, especially when you start early. Contact a member of the Vantage Financial team if you would like to learn more about how healthcare costs will impact your retirement.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendation for any individual. Where applicable, all data and information has been gathered from sources believed to be accurate such as the internet, non-affiliated 3rd parties, news articles and professional subscriptions but this information is not warranted to be correct, complete or true.