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Financial Facts

The Need…

The rising cost of health care in the United States has become one of the primary risks to a financially-secure retirement. With health care costs expected to continue increasing faster than inflation, the time to plan for your future health care needs is now…before you retire.

Your ability to enjoy a financially-secure retirement can be enhanced by planning for future needs such as:

Long-Term Care Services: Are you familiar with the variety of long-term care services available? If it becomes necessary, what type of long-term care services would you prefer? How will you pay for any needed long-term care services?

Advance Directives: Have you communicated your medical care wishes in the event you suffer a catastrophic medical event? Have you named someone else, a spouse or other family member, to make medical decisions for you in the event you are incapacitated?

Paying for Health Care in Retirement: Do you know what your out-of-pocket health care costs might be after you retire? Are you aware that Medicare, while it covers many health care costs, has significant limitations? Are you familiar with the various types of insurance that can help pay health and long-term care costs not covered by Medicare?

Did You Know:

  • In 2017, men reaching age 65 had an average additional life expectancy of 18.1 years, while women reaching age 65 could expect to live an additional 20.6 years on average. (Source: A Profile of Older Americans: 2018, U.S. Department of Health and Human Services)
  • While estimates vary, a couple retiring at age 65 without private health insurance from a former employer can expect to pay significant out-of-pocket health care costs during their retirement years.  Fidelity Benefits Consulting, for example, estimates that a 65-year-old couple who retired in 2019 needs about $285,000 to cover medical expenses throughout retirement, a 78% increase from the $160,000 estimated for those couples retiring at age 65 in 2002, when this estimate was first made. This estimate applies to retirees with traditional Medicare coverage and does not include costs of dental care, long-term care or over-the-counter medicines. (Source: 2019 Retiree Health Care Costs Estimate, Fidelity Benefits Consulting)
  • Almost 70% of people turning age 65 will need long term care services and supports at some point in their lives. (Source:, October 2017)
  • The national median daily rate in 2019 for a private room in a nursing home was $280, an increase of 1.82% from 2018. (Source: Genworth 2019 Cost of Care Survey, October 2019)
  • The average length of a nursing home stay is 835 days. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated February 2016)
  • At a median daily rate of $280, an average nursing home stay of 835 days currently costs over $233,000.

If you would like assistance in planning for your health care needs in retirement, please contact my office.

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