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How Much Will Healthcare Cost in Retirement? Prepare to Be Shocked

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As you might imagine, it’s not a small number.

It’s a big misconception that living costs drop drastically in retirement. The reality is that some of your expenses might get lower, but some might also rise.

Healthcare is likely to fall into the latter category. That’s because medical issues tend to arise as we age, and also, because Medicare, which seniors commonly rely on starting at age 65, has its limitations.

In fact, Fidelity recently ran some numbers, and it found that the average 65-year-old male-female couple retiring now should expect to spend a whopping $315,000 on medical costs. That figure assumes enrollment in Medicare Parts A, B, and D. Image source: Getty Images. When we break that figure down further, we see that the average 65-year-old male should expect to spend $150,000 on healthcare costs throughout retirement, while the average 65-year-old woman should anticipate spending $165,000. Since women tend to live longer than men, that higher number makes sense.

It’s also worth noting that last year’s Fidelity estimate had the average opposite-gendered 65-year-old couple spending $300,000 on healthcare in retirement. That means that figure jumped $15,000 in a single year. It also underscores the importance of saving for future healthcare costs […]

Click here to view original web page at www.fool.com

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