Understanding HOW you will fund healthcare as you age is one of the most important components in the Maximum Wealth process, but because it is such a complex thing to plan for, most people put off thinking about it until it is too late.
Continuing on with the 4 Cornerstones Of Retirement, take some time to learn about Retirement Cornerstone #2—“Retirement Healthcare”, and why you need to start planning for it right away.
Rising healthcare costs have been a thorn in the side of many Americans for a long time. But most people don’t give enough thought to just how much healthcare costs will run them in their golden years. While the exact cost will vary for everyone, most people should expect healthcare to be their SECOND HIGHEST EXPENSE in retirement, just behind Taxes. Even a healthy 65 year old couple today can expect to spend more than $320k on healthcare alone in retirement. And that DOES NOT include health insurance premiums.
Many people are uninformed that Medicare imposes monthly surcharges on individuals and married couples whose incomes exceeds certain amounts, and these costs continue to rise each and every year.
But people aren’t entirely oblivious to the challenges of paying for healthcare in retirement. In a recent study, 80% of more than 1,000 American adults said that they were worried about funding the costs of healthcare as they age, yet only 56% of respondents said they have factored healthcare into their actual retirement plan. And half of those who indicated they have planned for healthcare costs also admit that they have most likely underestimated those expenses. Experts estimate that at age 65, spending on healthcare is close to $16k per person—per year!
To help you plan ahead, Maximum Wealth has all the information pertinent to planning for “Retirement Healthcare”, which includes tools to estimate how much an individual can expect to pay for healthcare once they retire based on their life expectancy, overall health, assets, and gender.