When developing your retirement plan and planning how much money you will need to cover expenses, don't forget to estimate health care costs.
According to Fidelity Investments, a 65-year-old couple retiring will need an average of $275,000 (today's dollars) to cover medical costs throughout retirement.
How Medicare Works
Medicare Part A provides premium-free hospitalization insurance. Medicare Part B covers 80% of doctors' visits, lab work, and some medical equipment. Medicare recipients also can buy supplemental insurance to cover what Medicare Part B doesn't. They can also enroll in a Medicare Part D drug program. Another options for retiree’s is to purchase an all-in-one Medicare Advantage plan from an insurance company approved by Medicare.
Steps To Take Now
Here are helpful steps to take now:
It is never too early to start saving for the future, especially when you add in health care costs.
Stay updated on our news and events! Sign up to receive our newsletter.