Health Care Costs for Couples in Retirement Rise to an Estimated $245,000

October 07 01:00 2015 by ushadmin

While many things get better with age, new research shows the cost of health care isn’t one of them. Fidelity’s Retirement Health Care Cost Estimate reveals that a couple, both aged 65 and retiring this year, can now expect to spend an estimated $245,000 on health care throughout retirement, up from $220,000 last year1.

“For people offered a high-deductible health plan with a health savings account at work, choosing this option can really help them prepare, especially for Millennials who have a long time to save.”

The figure has increased 29 percent since 2005 when it was $190,000 (see chart). Factors boosting this year’s estimate include longer life expectancies and anticipated annual increases for medical and prescription expenses2. The estimate assumes enrollment in Medicare health coverage but does not include the added expenses of nursing home or long-term care.

“The sticker shock of $245,000 hopefully reinforces for many people that they need to act now, regardless of their age,” said Brad Kimler, executive vice president of Fidelity’s Benefits Consulting Services. “For people offered a high-deductible health plan with a health savings account at work, choosing this option can really help them prepare, especially for Millennials who have a long time to save.”…