Retirement Read Time: 2 min

Money that Buys Good Health is Never Ill Spent

A retired couple age 65 can expect to need about $315,000 saved to cover healthcare expenses in retirement. With healthcare expenses in the spotlight, it’s incumbent upon us to make sure our retirement strategy anticipates these costs.1

But that’s not enough.

Remember, healthcare coverage (including Medicare) typically does not cover extended medical care. And it’s a prospect we shouldn’t overlook. About 70% of people will need extended care at some point in their lives.2

These annual costs can range widely based on geographic location and the type of care required. An assisted living facility will cost over $85,000 per year in Alaska. In Oklahoma, it would cost around $49,000 a year. When retirees were surveyed, almost one in five reported that extended care costs were higher than expected.2,3

Finally, you may want to consider a Medigap policy, which may help cover some of the healthcare costs not covered by Medicare.

Making sure that you are properly insured for your medical costs may help strengthen the foundation of your retirement.

1. Fidelity.com, April 2023
2. Genworth.com, 2023
3. EBRI.org, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Managing the Risk of Outliving Your Money

Managing the Risk of Outliving Your Money

Steps to help you sustain and grow your retirement savings.

Understanding Extended Care

Understanding Extended Care

Understanding the types of extended care services—and what those services could cost—may be critical.

Perception vs. Reality

Perception vs. Reality

There’s an alarming difference between perception and reality for current and future retirees.

 

Have A Question About This Topic?







Thank you! Oops!

What Can You Buy With 529 Distributions?

This article can be a helpful guide when begin preparing for education expenses.

Is Term Life Insurance for You?

Term insurance is the simplest form of life insurance. Here's how it works.

Buying a Vacation Home? 5 Questions to Consider First

You may be considering purchasing a vacation property, this can be an exciting milestone, but there are a few things to consider first.

View all articles

A Look at Systematic Withdrawals

This calculator may help you estimate how long funds may last given regular withdrawals.

Disability Income

This calculator estimates your chances of becoming disabled and your potential need for disability insurance.

Should I Buy or Lease an Auto?

This calculator compares the financial impact of leasing versus buying an automobile.

View all calculators

16 Wall Street Cliches in 60 Seconds

Pundits say a lot of things about the markets. Let's see if you can keep up.

Safeguard Your Digital Estate

If you died, what would happen to your email archives, social profiles and online accounts?

When Do You Need a Will?

When do you need a will? The answer is easy: Right Now.

View all videos