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This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
It's also important to plan ahead for what you might have to shell out for medical expenses. Understanding the costs and what you can do to prepare are important for your retirement budget.
Healthcare could be one of the largest costs you'll face in retirement. It also may be one of the most underestimated—even for people who have spent years saving.
According to a recent study , 67% of people believe they will need less than $100,000 for healthcare expenses in retirement. In reality, the costs could be four times that amount. Few have actually taken time to calculate the costs.
* Includes all average expenses not covered by Medicare, such as additional premiums for Medicare Parts B and D, supplemental insurance, deductibles, copays, and costs for hearing, vision and dental care.
Source: HealthView Services 2017 Retirement Healthcare Costs Data Report.
Sources: Social Security Administration Life Expectancy Calculator, U.S. Census Bureau, Current Population Survey, 2016. HealthView Services 2017 Retirement Healthcare Costs Data Report.
Unfortunately, no. Medicare doesn't cover all types of medical expenses, and your Social Security benefits will likely not keep up to cover the rising costs of healthcare.
Will Healthcare Costs Break Your Retirement?
Three things you can do:
1. Understand the ABCs (and D) of Medicare
2. Consider Medigap Insurance
3. Consider Long-Term Healthcare Insurance
Here are some ways to help you manage future healthcare costs. Managing now may prevent you from using all your retirement savings on your health. The key is to start planning now.
How you live in retirement may depend on how you prepare today, especially when it comes to healthcare expenses. Do your homework now and plan to live your best life.
Understanding Medicare benefits and planning for potential healthcare costs can give you a better chance of making your retirement money last.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
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This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
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