Strategies to Pay for Retiree Health Care Costs

Plan ahead by including medical expenses as a line item in your retirement budget.By Susan B. Garland., From Kiplinger's Retirement Report, August 2014 Follow @susanbgarland

 

When you draw up a retirement-spending budget, you're likely to account for utilities, car insurance and lawn care. But have you given the cost of health care a hard look—or are the numbers too scary to contemplate?
One of the most important moves preretirees can make is to see that “their financial plan explicitly accounts for health costs in retirement,” says Sunit Patel, senior vice-president of Fidelity Benefits Consulting. On average, a couple age 65 will spend $220,000 on health care costs during retirement—and that does not include potential long-term-care costs, according to new estimates by Fidelity Investments.

What to Expect From Your Health Insurance in 2015

An annual survey estimates the increase in costs and cost-sharing next year.

By Kimberly Lankford, August 22, 2014

I get health insurance through my employer. What changes should I expect in my coverage for next year?
The National Business Group on Health’s survey of large employers usually provides the first glimpse of changes employers will be making to their health insurance plans for the coming year. The survey focuses on large employers, who tend to pay a bigger portion of the costs than small employers, but the same trends apply no matter where you get your insurance.