Many retirees worry about the rising costs and uncertainty of accessibility to healthcare services, especially people who retire before Medicare begins at age 65. The Centers for Medicare and Medicaid Services estimate the cost of healthcare has been increasing at 6.5 percent annually and showing no signs of slowing down.
According to EBRI’s annual healthcare in retirement study, the average retiree will have quite a hefty bill for health insurance and out-of-pocket expenses during retirement. The study estimates the average single male will need to accumulate $65,000 in his retirement investment portfolio by the age 65 to pay for his total healthcare costs for the remainder of his life. The average single female will need to accumulate $86,000 by the age of 65 to pay for her healthcare costs for the remainder of her life. That means the average couple will need to accumulate around $151,000.
The high cost of healthcare makes it an important issue to address when planning for retirement. However, the uncertainty with the changing healthcare landscape makes it difficult for many retirees to navigate it without getting lost. Resources are available; so do not hesitate to reach out to learn more.
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