According to an annual estimate released today by Fidelity Investments, couples retiring this year will need about $240,000 to pay medical bills incurred during their retirement. This amount has jumped 4% from last year’s projection.
“Today’s workers must understand that the cost of health care is expected to continue rising significantly in future years,” Brad Kimler, executive vice president of Fidelity’s Benefits Consulting business, said in a press release.
Kimler attributed rising health-care costs to growing medical inflation, higher costs of living and salaries that are either shrinking or stagnant. “Until that situation changes, it is critical that individuals include health-care costs in their retirement savings strategies today so they can be prepared to pay their medical bills throughout retirement,” he said
Fidelity also offers a word of advice for couples intending to rely heavily on Social Security benefits to fund future health-care expenses: don’t.
“Retirees relying entirely on Social Security to fund their health-care costs will be faced with difficult challenges in the future,” Kimler said. “Today’s workers should plan to supplement their retirement income to cover their medical expenses. It is never too late to begin utilizing all retirement-savings vehicles available, including any 401(k) accounts, IRAs and Health Savings Accounts, to help build a more secure retirement.”