For many people approaching retirement, paying for healthcare is their number one retirement concern . This is for good reason: healthcare expenses have been rising rapidly all over the country and show no signs of stopping.
As their 65th birthday approaches, they may be looking forward to signing up for Medicare – at least they’ll get some kind of break on their healthcare expenses, right?
The answer is: maybe not. One fact to consider: the average 65 year-old couple pays $220,000 in out-of-pocket healthcare expenses over 20 years of retirement.
Investors are usually bad at planning for healthcare costs – the study linked earlier from Nationwide found out 4 out of 5 people cannot accurately estimate how much they’ll pay for healthcare in retirement. Many advisors can only give it their best guess.
What we can say is that Medicare covers around one-half of retirees’ total healthcare expenses, leaving many paying out of pocket for the rest.
So, “Medicare Will Cover My Medical Expenses in Retirement” – Myth or Fact?
Fact – typically about half of them.
