Envisioning Your Retirement_Flipbook_2023

It’s estimated that a 65-year-old couple who retired in 2022 might need $318,000 to cover their out-of-pocket medical expenses in retirement. In three of the last four years, health-care costs have increased at a faster rate than general inflation. Thus, your medical costs could be significantly higher by the time you retire. Medicare offers valuable benefits, but retirees still have some out-of-pocket costs, including premiums, deductibles, copays, and prescription drug expenses not covered by Medicare. Then there are costs for uncovered services such as vision and hearing exams, eyeglasses, hearing aids, and dental care. Health Expenses in Retirement Man Woman Married couple These are the estimated savings amounts needed for 65-year-olds to have a 90% chance of covering their Medicare (Parts B and D), Medigap (Plan G), and median out-of-pocket prescription drug costs in retirement. Source: Employee Benefit Research Institute, 2023 How much would you need to save for medical care? $318,000 $197,000 $166,000