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

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.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management