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People’s Biggest Retirement Cost Concern is Health Care
However, the overwhelming majority have not tried to figure out the expense.
Reported by Lee Barney
To help people get a better handle on health care costs in retirement, Voya has developed a white paper, “Playing the Long Game—Understanding How Health Care Costs Can Impact Your Retirement Readiness.”
The paper notes that health care costs are projected to rise 6.5% this year—far greater than the 2.4% rate of inflation for the 12 months ending in March. The paper notes that Medicare spending at age 70 averages $7,566. This increases to $11,618 at age 80 and $16,145 at age 96.
Voya notes that its myOrangeMoney Retirement Calculator includes questions about health care. The firm also recommends that people invest in health savings accounts (HSAs) and consider investing in annuities and long-term care insurance. The white paper can be downloaded here.