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.

Solar system

$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

Space helmet

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