Health care costs can derail retirement plans
Paying for health care has rarely been considered a major threat to retirement budgets, but with health care inflation driving costs higher, increased longevity and Medicare means-testing imposed on higher-income retirees, that's changing fast.
Many financial advisers rely on income replacement ratios to estimate the annual income needed to maintain a desired lifestyle in retirement. Although a general inflation assumption of between 2.5% and 3% may be appropriate for most future expenses, it could fall far short of actual health care expe
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