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.
