You Have Not Planned for Medical Expenses in Retirement
Too often when saving for retirement, workers neglect to plan for the cost of their healthcare needs. Neglecting this expense can derail the best-laid retirement plans.
Fidelity’s 2016 Retiree Health Care Cost Estimate projected that the cost of healthcare for a 65-year-old couple retiring in 2016 is expected to total $260,000 over the course of their retirement. This is a 6 percent increase over 2015, and the highest estimate since the survey began in 2002.
Jody Dietel, chief compliance officer of consumer-directed benefits provider WageWorks, said more people should be aware of the need to save for healthcare costs in retirement. “It’s important to understand that there’s a place for both a 401k and an HSA,” she said, referring to a health savings account in the latter example.