Health Care Costs After Age 65?
Estimated Costs for 2023

It is estimated that the average couple retiring at age 65 in 2023 will need approximately $315,000 to cover health care expenses throughout retirement. This estimate assumes retirees are enrolled in traditional Medicare, which covers hospital stays, doctor visits, physical therapy, lab tests, and prescription drugs​ (Fidelity Newsroom)​​ (The Whole U)​. This amount does not include costs for long-term care or home health care.

Rising Health Care Costs

Health care costs continue to be one of the largest expenses in retirement and are rising annually. Medicare increasingly covers less and does not cover long-term care or home health care. As we live longer, careful planning becomes crucial to managing these costs​ (The Whole U)​.

Planning for Healthcare in Retirement

1. Understand Your Needs: Evaluate when to stop working, when to take Social Security, and how to generate cash flow in retirement. These decisions will impact how you prepare for health care expenses.
2. Medicare Enrollment: Consider enrolling in Medicare Parts A, B, and D when you first become eligible to avoid late enrollment penalties.
3. Supplemental Insurance: Look into Medigap policies and Medicare Advantage plans for additional coverage not provided by traditional Medicare.
4. Savings Accounts: Consider using Health Savings Accounts (HSAs) if eligible, as they offer tax advantages for medical expenses​ (Fidelity Investments)​.

Personal Experience and Advice

As someone who is 63 years old, I understand the concerns about health care costs in retirement. Unlike previous generations, you likely won’t have access to employer-sponsored retiree health insurance. Health care has become one of Americans’ most significant worries. It is essential to plan and save for these expenses to ensure a secure retirement.

Conclusion:

You need to expect and budget for ever-increasing out-of-pocket medical expenses. As time goes by, everyone ages and our bodies break down. Our golden years, right? Modern medicine keeps us alive, but at what cost to our pocketbooks?

In the United States today, it’s the medical bills that will kill you! Therefore, get prepared for longevity and the high cost of staying healthy. Also, prepare for your out-of-pocket medical expenses in retirement. You are going to have them, and they can put quite a dent in your retirement plans.

When planning for retirement, consider exploring options like Palm Coast annuity insurance. Seeking advice from fiduciaries in my area can help secure your financial future. After all, enjoying your retirement should also include leisurely activities like visiting Daytona Beach antique stores or relaxing at the Ormond Beach Andy Romano Beachfront Park.

With 42 Years of experience as an Independent Investment Advisor, Fraser Allport can help you prepare for your Retirement. Fraser is versed in DROP, Social Security, Medicare, and how to pay for your large and looming Out of Pocket Medical Expenses. Get proactive and involved.

Fraser is versed in DROP, Social Security, Medicare, Income Taxes, and …

how to pay for your large and looming Out of Pocket Medical Expenses in Retirement.

Contact Fraser Allport at 386.882.6256 if you would like to receive a complimentary copy of this article by Fidelity Research. You can also contact Fraser via email below.

Thanks to Fidelity Research