One of the biggest expenses most retirees encounter concerns healthcare. Even with a healthy lifestyle and great habits, getting older is almost certain to include a notable increase in costs associated with maintaining your health and quality of life. Medicare can help supplement costs no longer covered by an employer-sponsored health plan, but it’s possible that it won’t cover everything, leaving your savings to pay the difference. 

The average 65-year-old will need around $165,000¹ to cover healthcare costs throughout retirement. That number can increase drastically if long-term care also becomes necessary for you, your spouse, or both. 

The unique (and possibly expensive) costs associated with long-term care are significant enough that it’s wise to focus a specific portion of your retirement planning on these future needs. Consider that²:

• 70.0%: Percentage of people turning age 65 who will develop a severe long-term-care need in their lifetimes.
• 15.0%: Percentage of people turning age 65 who will spend more than two years in a nursing home.
• $141,444: Estimated median annual nursing home cost, private room, 2030 (assuming 3% inflation rate).
• 18.2%: Percentage of long-term-care services and support that were provided through Medicare (acute and post-acute care following a health event), 2020.

Call Consha Financial at 678-539-9518 and hear about options to provide for future health needs while staying focused on pursuing your retirement goals. 

1. https://www.usatoday.com/money/blueprint/retirement/healthcare-costs-in-retirement/
2. https://www.morningstar.com/personal-finance/100-must-know-statistics-about-long-term-care-2023-edition

Investment advisory products and services made available through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. 

9/24-3866167

This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.