If you’re concerned about rising health-care costs in retirement, you’re not alone:

3 out of 4 people agree that the growing cost of health care is one of their top fears in retirement¹

70% of adults are unsure or can’t estimate how much they expect to pay for health care costs in retirement¹

By one estimate, an average 65-year-old couple retiring today could spend up to $325,000 on health care costs in retirement.²

Where does the money go?

• Medicare, supplemental Medicare plans and private health insurance; costs include premiums, deductibles, copayments and coinsurance
• Health care that Medicare and other health insurance may not cover, such as long-term care, dental care, vision care and hearing aids 
• Prescription medications

5 ways to plan ahead

Planning now can help you prepare for these expenses and make them feel more manageable.

Consider these ideas.

1. Review your retirement benefits with your employer. You may have health-care benefits available to you and your dependents after you retire. Benefits like these can significantly reduce your health-care costs in retirement. 
2. Factor in Medicare and other health-insurance premiums when setting your retirement savings goal. Monthly premiums account for a significant portion of healthcare spending in retirement.³ To see current premiums, visit Medicare.gov.
3. Asigna una parte de tus ahorros para los gastos de bolsillo. Esto incluye todo lo que está fuera de las primas, como deducibles y atención sin cobertura. These less-predictable expenses can account for 20% or more of health-care spending for retirees.³ Having money reserved to cover them can give you peace of mind.
4. Aprovecha una cuenta de ahorros para la salud (HSA) si la ofrece tu empleador. El dinero que apartas en una HSA puede usarse para gastos de atención médica calificados libres de impuestos, tanto ahora como después de jubilarte. En 2023, los límites de contribución anual (incluidas las contribuciones del empleador) son de $3,850 para individuos y de $7,750 para una familia. Si eres mayor de 55 años, puedes hacer contribuciones adicionales de recuperación de $1,000 cada año.
5. Take care of yourself. Improving or maintaining your health now could help cut down on medical expenses in the future.

[1] The Nationwide Retirement Institute^® 2022 Health Care Cost in Retirement Survey (Oct. 2022) Microsoft PowerPoint - NFM-21188AO.1 (nationwidefinancial.com)
[2] “A Bit of Good News During the Pandemic: Savings Medicare Beneficiaries Need for Health Expenses Decrease in 2020,” EBRI (28 de mayo de 2020) A Bit of Good News During the Pandemic: Savings Medicare Beneficiaries Need for Health Expenses Decrease in 2020 (ebri.org)
[3] “How much do retirees spend on uncertain health costs?,” Center for Retirement Research at Boston College (agosto de 2022). ¿Cuánto gastan los jubilados en costos de salud inciertos? (bc.edu)