How to predict and prepare
Have you included your expected health care expenses in your retirement plan?
According to a model we developed in partnership with Mercer Health & Benefits, average health care costs, even with Medicare, could surpass $5,000 per year.* And although costs vary substantially from person to person, it’s possible to estimate what yours might be—and then plan for them.
Planning for health care costs before retirement gives my clients a bit more control. The more we plan, the more they feel at ease when it comes time to retire.
How much money you’ll need for health care is the biggest unknown expense you’ll have in retirement. Once we tackle that—and how it may change throughout the years (gap year coverage, Medicare at age 65, and potential long-term care costs)—it makes for a much smoother transition.
So what comprises the model that drives our personalized estimates? There are many factors that affect health care expenses, but according to our research, these are the 6 most important.