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March 8, 2010 |
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?
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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?
|   | | The Need... Healthcare In Retirement   | Did You Know... - In 2004, men reaching age 65 had an average additional life expectancy of 17.1 years, while women reaching age 65 could expect to live an additional 20.0 years on average. (Source: A Statistical Profile of Older Americans Aged 65+, U.S. Department of Health and Human Services, July 2008)
- 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 Investments, for example, estimates that a 65-year-old couple retiring in 2009 will need about $240,000 to cover medical expenses in retirement, a 6.7% increase from the 2008 estimate of $225,000.  The estimate does not include costs of dental care, long-term care or over-the-counter medicines. (Source: The Rising Cost of Health Care and Your Retirement, Fidelity Investments, 2009)
- At age 65, people face at least a 40% lifetime risk of entering a nursing home at some point in their lifetime and about 10% will have a stay of five years or longer. (Source: AHIP, A Guide to Long-Term Care Insurance, 2004)
- The average daily rate in 2009 for a private room in a nursing home was $219, an increase of 3.3% from 2008. (Source:Â 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs)
- The average length of a nursing home stay is about 2.4 years. (Source: CDC/NCHS Health Care in America, Trends in Utilization; U.S. Department of Health and Human Services; January 2004)
- At an average daily rate of $219, an average nursing home stay of 2.4 years currently costs about $192,000.
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| If you would like assistance in planning for your health care needs in retirement, please contact my office. | |
