
Big Medical Costs Often Underestimated by Retirees
Most people enter retirement in relatively good health, and understand they will pay premiums for Medicare, supplemental Medicare insurance, and Medicare drug plans, along with some out-of-pocket costs not covered by these plans. Many will face extra costs that recur each year which are not covered. Unanticipated expenses can add tens of thousands of dollars to healthcare costs in retirement. Fidelity Investments estimate cumulative health care costs will range around $345,000 for the average couple throughout retirement, or $172,500 for an individual. Advancements in medicine have contributed to longer lifespans. With the average life expectancy for a 65-year-old now at 82 years, retirees should prepare for potentially 20 to 30-plus years of retirement and associated healthcare costs.