Lifelong health care expenses jump to workers retiring in 2019



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The costs of living comfortably in retirement continue to increase for Americans – particularly with regard to health care.

According to a new study conducted by Fidelity Investments, a 65-year-old couple retiring this year will spend about $ 285,000 in medical and medical expenses during retirement – and this assumes that both individuals are eligible for coverage. Medicare. That compares with a projection of $ 280,000 from Fidelity for 2018 and $ 275,000 for 2017. About ten years ago, Fidelity's estimated cost of medical care for retirees was $ 240,000.

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For single retirees, health care-related costs for the current year are estimated at $ 150,000 for women and $ 135,000 for men.

"Paying for health care – before and during retirement – continues to be a priority for Americans and, understandably, a cost that can vary significantly from person to person and difficult to predict," hopes Hope, a senior vice president, Fidelity Workplace Consulting said in a statement.

On the plus side, out-of-pocket Medicare costs have leveled off.

A recent study found that even when people have the option of saving to fund their overall retirement expenses, they still fall short of savings goals to sustain full retirement at age 65. reaching target targets, some may face a "crisis".

But for younger Americans, saving the necessary amounts is doable.

A 35-year-old couple, for example, could reach the $ 285,000 limit on health care, leaving $ 2,820 each year in a health savings account (HSA) – a strategy recommended by Fidelity.

An HSA is an account in which an individual contributes with pre-tax dollars for the explicit purpose of spending those funds on future medical expenses. Money grows free of taxes, and no tax is levied on contributions or withdrawals (provided funds are withdrawn for qualified medical expenses). HSAs can be used to cover everything from dental, vision and prescription costs to Medicare premiums.

For pre-retirees who need some extra advice, Fidelity recommends the following:

– Know what Medicare covers – and what it does not

– Maximize benefits for tax-advantaged savings accounts, including 401 (k) accounts and HSAs

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– Consider delaying the benefits of Social Security to as close to 70 as possible. This strategy can result in a lifetime income stream up to 32% higher compared to those who do not expect up to 70 to claim.

– Find out what benefits, if any, an employer offers in retirement.

– Consult a financial professional

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