Budgeting for Healthcare in Retirement

New report finds that couples will need $240,000 to cover out-of-pocket healthcare costs

May 23, 2012 RSS Feed Print

Both Richards and McClanahan stress that financial fitness is as important as physical fitness. The large sum required for proper healthcare demands that healthcare be factored into everyday living expenses and that investors start saving earlier in their careers. Richards says there are options outside of the traditional 401(k) that allow for health-specific savings.

"When we work with our plan sponsors, we talk to them about health savings accounts, a relatively new concept," Richards says, referring to accounts that allow workers to save pre-tax income to pay for health-related costs. "If Fidelity is right and it's going to take $240,000 today to manage healthcare expenses outside of the government, now's the time to start saving."

Tags:: medical quality,; health insurance,; healthcare,; retirement,; money

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columbusjones238 of CA 12:00PM May 24, 2012

It seems like the estimates on medical expenses are a little high. If you have a medicare supplement then this should be much lower like $100k instead of $240K.
source - http://aquilainsurance.com

Paul Moyer of SC 11:53PM May 23, 2012