Retirees should budget around $250,000 for health care
A retired couple should be budgeting around $250,000 for dental and health care, according to a report which is due to be published next week by Fidelity Investments.
The figure of a quarter of a million dollars is a projection that is based on a retired couple that have a Medicare policy; the study also assumes an average life expectancy and a lack of insurance provided by employers during retirement. The company conducts these studies to help employers work out suitable employee benefits schemes.
The projected figures will undoubtedly cause grave concern amongst older people, as this is just one of the costs that must be covered during retirement, along with general living costs and mortgages. The report has been designed to encourage people to think about their general health and dental care when planning for their retirement.
Fidelity Investments has compiled the report using annual figures over the last eight years; each year, the projected figures are higher than the year before, to take into account inflation. The report has not taken into consideration the new healthcare bill recently passed at Congress.
President Obama’s healthcare reform plans could make a dramatic change to the projected costs of healthcare during retirement; the bill to reform the structure of healthcare and insurance was passed just days ago and promises to shake-up the current system; as part of the new system, there will be a much greater level of equality and everybody should have the right to access affordable health and dental care. However, according to representatives from Fidelity Investment, the projected figures will not be altered significantly, as new measures are primarily focused on people under the age of 65. It remains to be seen what changes will take place when the new legislation comes into play.
Join this Discussion