Healthcare will most likely be your highest expense during retirement.
As you age, you may fall prey to neurological diseases like:
You may need surgery due debilitating arthritis or a broken hip.
Not only are medical costs increasing for retirees each year, retirement will last longer than most retirees expect. The fact of the matter is that your medical expenses are going to increase during retirement.
The newest data from Fidelity suggests that the lifetime medical costs for a married couple during retirement will be $240,000, up 4% from last year’s estimate of $230,000.
I’ve summarized the data in this infographic.
As you can see in the data above, co-insurance and deducible costs were the highest expenses, with a sizable amount due to prescription drugs.
When you retire, you won’t have the safety net that an employer sponsored healthcare plan provides. I hope this post has made you more aware of how much the average American is going to pay for healthcare over their retirement. It’s incredibly important to have proper healthcare plans in place, as well as the right documents.
If you have any questions or comments about medical expenses during retirement, let me know in the comments below.