Myth 14: I’ve Already Saved Some Money for Healthcare Expenses in Retirement
Rising health care costs across the board mean you could be setting yourself up for financial struggles come retirement — especially if you haven’t set aside enough money for one of your biggest expenses: long-term care.
As Frank Armstrong III, founder and principal of Miami-based Investor Solutions points out, long-term care costs are not covered by insurance: “Once a hospital releases you to any kind of long-term care facility, your medical coverage quits paying for your care.” Considering that 70 percent of people turning 65 will need some form of long-term care in retirement, according to the U.S. Department of Health and Human Services, you will need at least $100,000 a year to cover your costs, says Armstrong.