Fidelity says retirees can expect to spend $285,000 on health care

Fidelity says retirees can expect to spend $285,000 on health care
Annual study says total estimated cost has risen more slowly in past two years.
APR 02, 2019
By  Bloomberg

A 65-year old couple retiring this year can expect to spend $285,000 on health care and medical expenses throughout retirement, according to an annual health care study done by Fidelity. For individuals, the estimate is $150,000 for women and $135,000 for men. While the cost of health care for couples rose $5,000 from the $280,000 estimate of 2018, costs over the last two years have risen more slowly — by 3.6% — than in the period from 2015 to 2017, when the estimate grew to $275,000 from $245,000, a 12.2% increase. (More:Democrats offer `Medicare for All' bill to transform health care) "The promising news for this year's retirees is that out-of-pocket Medicare costs have leveled," Fidelity said in a release. "However, many Americans are still unclear about what Medicare does and does not cover, likely a reason many still underestimate the costs of health care in retirement." Fidelity said that while its estimate is for a couple retiring in 2019, the numbers are a "call-to-action to younger generations," reminding them to take advantage of the time and investing opportunities they may have available to them. It suggests adopting "diligent savings habits" and making use of vehicles such as Health Savings Accounts (HSAs) to maximize the effects of saving.

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