According to a new report released by Fidelity Investments on Thursday, a couple retiring in 2014 will be pay $220,000 on average towards healthcare costs over the course of their retirement. Furthermore, the choice to retire early could cost couples over fifty-thousand extra dollars in medical expenses. A major cause of this is that individuals do not qualify for Medicare coverage until they reach age 65. If retirees are not covered by their former employers until they qualify for Medicare, they are left to pay for private insurance at a time of increased medical care use until they qualify.
“Rising health care expenses are forcing people to make educated decisions now more than ever, ranging from the services they utilize to the age they choose to retire,” explains Bradford Kimler, executive vice president of Fidelity Benefits Consulting.
It is more important than ever to be a smart health care consumer. As life expectancies increase and medical expenses continue to climb, planning for retirement early is crucial. Money put aside now will need to last longer, and consumers need to educate themselves early on in order to understand what their options are once entering retirement.
Ways Fidelity Investments recommends to reduce medical costs during retirement include; understand health insurance options and Medicare, factor health care costs into retirement income planning, and take advantage of all potential funding sources.
Read more here- “How to Tame Retiree Health Care Costs,” (Fidelity Viewpoints)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.