Cheryl Costa, a certified financial planner in Framingham, Massachusetts, said the forecast may seem intimidating, but it might help to think of estimates in terms of annual or monthly costs rather than lump sums. . Fidelity’s average estimate over 20 years has come to about $656 a month, which she said isn’t inconsistent with what she might already be paying for medical bills.
“Keep that in mind,” she said.
Carolyn McClanahan, a certified financial planner in Jacksonville, Fla., said there are many variables in medical costs and future changes in Medicare rules are unpredictable. So, instead of focusing on general estimates to save on health care costs for retirement, people are looking at how much they currently pay for health care, their general health, family history, how much they use health care services, etc. , she said, should consider one’s specific situation.
“What’s your take on healthcare?” McClanahan said. If you visit the doctor less frequently and exercise to maintain a healthy weight, you may be able to pay less out of pocket in retirement and budget accordingly, she says. .
Here are some questions and answers about medical expenses after retirement:
Will a health savings account help with medical expenses in retirement?
Health Savings Accounts (HSAs) offer valuable tax benefits and, if eligible to contribute, can be a great way to save for medical expenses for retirees, financial advisers say. You must have a high deductible medical plan with a specific annual deductible (at least $1,500 for 2023 Personal Coverage).
Money is deposited before tax, grows tax-free, and is tax-free when withdrawn, as long as you use it for eligible expenses. Individuals can contribute up to $3,850 in 2023, with an additional $1,000 if they’re 55 or older. (If you enroll in Medicare, No longer contributes to HSAHowever, the funds can also be used to pay for health and medical expenses. )
