Projected Health Care Costs for Retirees Up Sharply

A 65-year-old couple retiring this year will spend approximately $245,000 on health care during their retirement years, according to Fidelity Investment’s annual Retirement Health Care Cost Estimate. That amounts to an 11 percent increase over last year’s estimate of $220,000 and a 29 percent increase from the 2005 estimate of $190,000.
 
Fidelity attributes the jump to increased longevity among retirees and rising medical and prescription drug costs. The estimate does not include potential long-term care or nursing home expenses.
 
“Everyone knows that healthcare expenses can be particularly daunting for retirees,” said NAIFA president Jules Gaudreau. “NAIFA members take those expenses into account when working with clients, along with the potential need for long-term care and numerous other possible financial threats. Advisors can anticipate retirement expenses that would never occur to many consumers and help build plans to mitigate those.
 
“That's a big reason why NAIFA has been so heavily involved with the Department of Labor’s proposed fiduciary rule that would limit retirement advice for middle-income investors. People facing the uncertainty of retirement need more advice, not less.” 
  • Posted October 8, 2015 IN


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