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How much in out-of-pocket health care costs arise in retirement?

On Behalf of | Oct 14, 2015 | Trusts |

Getting the right medical care is important when one is in their retirement years. There are certain challenges that can arise for seniors when it comes to getting the medical care they need for the medical conditions they have. One are challenges when it comes to paying for such care.

A person can end up with quite a bit in the way of health care costs during their retirement years. This can be seen in a recent estimate by Fidelity’s Benefits Consulting Group. The organization estimated how much in out-of-pocket health care costs the average couple that is retiring and that qualifies for Medicare and has no employer-provided retirement care will face during the course of their retirement. The estimate was $245,000. This is higher than the estimate from last year, which was $220,000.

Of course, this figure is just an estimate and an average. Every retiring individual and retiring couple has their own unique health care needs, which will impact what particular health care costs they will face during their retirement years. However, the estimate still serves as a good illustration of how substantial of health care costs retirees can end up facing.

When estate planning, it can be important for seniors to think about their potential future health care costs. For one, such costs could potentially impact a variety of different estate planning issues down the line. Also, there are things that can be done within an estate plan to help with planning for future care costs. For example, trusts can sometimes help with addressing some of the significant concerns, such as asset protection concerns, that can arise in relation to elder care costs. Elder law lawyers can assist retiring individuals with identifying what important care cost planning issues are present for them given their particular situation and with understanding what estate planning steps can be taken for addressing such issues.

Source: BenefitsPro, “Retirement savers must plan for health care sticker shock,” Nick Thornton, Oct. 8, 2015

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