Do you have a strategy to pay out-of-pocket medical costs in retirement? If not, now may be the time to start planning.
According to Fidelity, the average retired couple will spend nearly $260,000 on out-of-pocket health care costs.1 Those costs are for things like deductibles, copays, prescription drugs, premiums and much more. It doesn’t include costs for long-term care, which could significantly increase your health care expenses.
Many retirees incorrectly believe that Medicare will cover all their medical costs in retirement. The truth is that Medicare usually covers only a portion of your expenses. Some types of care aren’t covered at all. That means many retirees face sizable bills that they must pay out of pocket.
Behind on your retirement savings? You aren’t alone. According to Gallup’s 2017 study of financial concerns, more than half of all Americans are worried about their ability to pay for retirement.1
If you’re behind on your savings plan, conventional wisdom is to simply save more money. However, that may not be a feasible option. After all, there’s only so much money you can save out of your paycheck. No matter how far behind you are on retirement, you still have to cover current bills and expenses. It may not be possible for you to put more money in a 401(k) or IRA.
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