Have you included your expected health care expenses in your retirement plan?
If your answer is no, you're not alone. Only 3 in 10 workers have tried to calculate how much they'll need to cover health care costs in retirement.*
A model we developed in partnership with Mercer Health shows your average health care costs, even with Medicare, could surpass $5,000 per year.** That said, it's important to note a couple of things: Costs vary substantially from person to person, but it's possible to estimate what they might be for you—and that lets you plan for them.
My clients nearing or in retirement find it invaluable to have this custom estimate built into their financial plans. Whether it's higher or lower than they expect, it gives them a sense of control to know what they might be spending on health care—and how those numbers might continue to change throughout retirement.
So what comprises the model that drives our personalized estimates? Our research shows many factors affect health care spending—these are the 6 most important.