Have you considered how much some basic needs will cost you in retirement, such as health care? Did you know that a 65-year-old couple that retired in 2012 need about $240,000 to cover medical expenses throughout retirement?
The rising cost of health care in the United States has become one of the primary risks to a financially secure retirement. Health care costs are expected to continue increasing faster than inflation.
Costs to consider include:
- Long-term care services: How will you pay for any needed long-term care services? Do you have long-term care insurance?
- Health Care Costs: Do you know what your out-of-pocket health-care costs might be after you retire? Are you aware that Medicare, while it covers man health-care costs, has significant limitations? Are you familiar with the various types of insurance that can help pay health and long-term care costs not covered by Medicare?
- Life Expectancy: In 2011, men reaching age 65 had an average additional life expectancy of 17.3 years, while woman reaching age 65 could expect to live an additional 20.0 years on average.
- About one-third of individuals who turned 65 in 2010 will need at least three months of nursing home care, 24% will need more than a year, and 9% more than five years.
- The average daily rate in 2012 for a private room in a nursing home was $248.
- The average length of a nursing home stay is 835 days.
- At an average daily rate of $248, an average nursing home stay of 835 days currently costs over $207,000.
Concerned about potential costs in your retirement? Consider contacting Cook & Cook Associates for a complimentary Retirement Planning consultation.
