Early planning for healthcare urged

Posted December 5, 2005 By UPI.com

DALLAS, Dec. 5 (UPI) — How much to save for healthcare during retirement is hard to figure out but early planning will help build a comfortable cushion, says a report.

Fidelity Investments says the average 65-year-old couple retiring in 2005 will need about $190,000 to cover medical costs over 15 to 20 years, assuming no employer-provided retiree coverage and life expectancies of 15 years for the husband and 20 years for the wife, reports The Dallas Morning News.

“Medical care is likely to be the largest expense in retirement and the largest unknown,” says Bob Carlson, editor of Retirement Watch, a monthly newsletter. “In addition, both government and employers are shifting medical expenses to individuals. The (baby) boomers must be prepared to pay most of these expenses over time, regardless of what their current benefit plans indicate.”

Among steps to be taken for early planning are getting familiar with one’s family’s health history and assessing one’s own health, creating a separate fund for future healthcare expenses such as a health savings account, and using one’s connections to see if a labor union or a professional association offers group health insurance.

facebooktwittergoogle_pluspinterestlinkedinmailby feather