Transitioning into Retirement: Health
February 20, 2025
Take a moment and consider the amount of $330,000. That’s a sizable sum, no matter your total nest egg. And it is also a good estimate for how much a 65-year-old couple can anticipate spending on health care costs through average life expectancy.1
Healthcare is vital to your quality of life. However, you do not want everything you have worked and saved up for spent on medical needs instead of personal enjoyment.
Medicare provides a safety net for retirees. Unfortunately, it does not cover everything. Premiums for Medicare Parts B and D, as well as supplemental insurance plans, can add up. For example, the monthly premium for Medicare Part B in 2025 is $185.2 Additionally, out-of-pocket expenses for prescription drugs, dental, and vision care can have a wide range of variation. It is important to budget for these costs. You might even consider purchasing supplemental insurance to cover gaps in Medicare.
One of the most significant healthcare expenses in retirement is long-term care. According to the Employee Benefit Research Institute, 70% of people turning age 65 will need some form of long-term care in their lifetime. This can include services such as nursing home care, assisted living, or in-home care. The costs for these services can be substantial. The estimated median annual cost for a private room in a nursing home in 2030 is projected to be $141,444. Planning for long-term care is crucial. You must ensure you have the resources to cover these expenses.3
Addressing these future challenges now can help. It can put you in a position to take care of yourself while focusing on all the best parts of your golden years. Contact us to find out what plans can be put in place to begin providing for future medical costs before the need arises.