Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value.
Future Wealth and Health
Future Wealth and Health
Plan for Health Care as You Plan for Retirement
As you're growing your retirement savings and planning for the future, keep this in mind:
- We're living longer.
- We'll be facing more health challenges.
- Health care, especially prescriptions, will continue to get more expensive.
- Insurance may cover fewer expenses.
You may already be saving to pay for housing, utilities, insurance, travel and major purchases in retirement. But have you factored in your future health care costs?
You probably won't have health insurance through an employer. You'll be responsible for paying your health insurance premiums and out-of-pocket costs.
$260,000
The average 65-year-old couple will need an estimated $260,000 to cover health care costs in retirement.
Source: Fidelity Investment Retiree Health-Care Cost Estimate, 2016
43%
43% of already-retired Boomers say they're spending more on health care than they had planned.
Source: Capital Group, 2017
How will you spend your health care dollars?
Source: HealthView Services, 2017
Countdown to a Healthy Retirement
Your Mission: Be Ready
5. Stick to healthy habits. This can help you spend less on medical care, now and in the future.
4. Add tax-free funds to your Health Savings Account, if you have one.
3. Invest for the long term by diversifying your portfolio. Your plan may offer pre-made portfolios or target date funds that address this.
2. Use a tool to estimate your future health care costs. Check out AARP's health care cost calculator.
1. Keep saving for retirement. By saving more now, you'll have more money available to cover your health care expenses later.
Age 20-35
Aim to start saving as early as you can.
Target Savings Goal:
10-15% each paycheck
Aim to Save:
1x annual salary
Age 36-50
Talk to a financial planner about ways to save more more to cover future health care costs.
Target Savings Goal:
15%-20% each paycheck
Aim to Save:
3.5x annual salary
Age 51+
Research Medicare plans. Go to Medicare.gov for details.
Target Savings Goal:
20% each paycheck
Aim to Save:
7x annual salary
Act now for a smooth liftoff in retirement. Enroll in your plan or log in to increase your contribution.
Categories
Saving for Retirement