Healthcare Costs: What Americans Now Fear Most During Retirement
The biggest matter in question today is the rising costs for millions for Americans each year: health care. Respondents to a recent Prudential survey were more likely to fear rising healthcare costs in retirement than any other issue - even including the Social Security depletion changes.
It used to be that out of all retirement factors to worry about, Americans were most concerned about social security benefits coming through. And rightfully so, according to a 2016 report of the Board of Trustees for the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds that describes the reduction of both trust funds for future-old-age and survivors insurance in 2035 and disability insurance in 2023.
But for many Americans today, healthcare spending is a great unknown. It's nearly impossible for anyone to forecast their health (and therefore their health expenditures) 10, 20, 30 years down the road.
A 65-year-old, healthy couple can expect to spend $266,600 on average over the course of their retirement on Medicare premiums alone, according to HealthView Services. An estimate from Fidelity is a little less: $245,000. Neither include out-of-pocket expenses or long-term care costs.
While these numbers reveal where healthcare expenses during retirement are today, next year they will be different.
So what can you do? All experts agree: Save aggressively. The nest egg you provide yourself could make all the difference. We compiled 5 easy ways to start saving and make a big difference in 2017 HERE.