$225,000 to Retire
By MedHeadlines • Mar 5th, 2008 • Category: Elderly Care, Family, Lifestyle, MedicareFidelity Investments just released information pointing to retiree couples needing $225,000 in retirement to cover their health care costs. This figure is an increase of 4.7% over last year’s number.
Part of the cost increase has been attributed to the reduction in people who have employer sponsored health plans in retirement. This estimate does not include any expenses such as over the counter medicines, dental services and long term care which can make the figure dramatically higher.
The executive vice president of Fidelity Investments has suggested that financing health care will need to become a central financial planning strategy as these costs continue to rise on an annual basis.
Fidelity offers these 5 tips to help a person plan for their retirement health care costs:
1. Develop a personal retirement financial plan
2. Begin your savings early to allow for compounding interest to assist
3. Learn about the consumer health care system and your available options
4. Review your employer sponsored health plans both today and for retirement
5. Determine what your social security benefits will be if any and how that will affect your health care financial need
- Do you think that $225,000 is enough for a retirement? Too much?
Given the health care costs of many chronic illnesses such as emphysema and lung cancer, even $225,000 can be quickly exhausted by hospital stays. You can actually fare better by having less money so that you are then covered by Medicare entirely. It is best to keep any money you may have out of the country or there will be nothing left for your heirs after the medical bills.