It’s no secret that health care remains one of the biggest expenses facing American retirees. Coverage through Medicare, Medicaid, or another insurer will help mitigate these costs to some extent. Yet retirees still tend to pay tens of thousands of dollars for health care over the course of their retirement years.
A recent analysis estimates that retired households can expect to spend, on average, $67,000 in out-of-pocket health care costs over their remaining lifetime. This figure applies even for those who have health insurance coverage. Individuals who live longer may easily pay far more – upwards of $130,000 on average for those who live to age 90.
How Best to Prepare for Retirement
The average age of retirement in the U.S. currently stands at 65 for men and 62 for women, according to the Center for Retirement Research at Boston College, which also issued the analysis on retiree health care costs. Even if you are not planning to retire for some years, remember you can always: