Healthcare among top expenses for retirees
Average 65-year-old retired couple will need $300K for healthcare
InvestigateTV - Healthcare is the number one expense to plan for as you prepare for retirement, according to our partners at the financial website NerdWallet.
The average 65-year-old retired couple will need about $300,000 in after-tax savings to handle health care costs, according to a 2021 report from Fidelity. Specific costs will depend on where you live, how long you live and your overall health.
Long-term care is another major cost. Seniors who live to be 80 have about a one in four chance of needing long-term care and the cost of those facilities typically average $4,500 a month.
Dental care is next. According to the Kaiser Family Foundation, the average senior who used Medicare dental services paid nearly $900 a year out of pocket.
Finally, prescription drugs are also a big expense in retirement. A study from The Senior Citizens League (TSCL) showed retirees spent an average of $3,875 out-of-pocket annually on prescription drugs.
A financial planner specializing in retirement needs can help you stress test your financial plan for health events and other expenses, plus they can help you come up with a plan for any gaps in your coverage.
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