Retirees Will Pay Twice as Much as They Think for Healthcare: Fidelity

The average 65-year-old retiree can expect to spend $165,000 on healthcare in retirement. That is more than twice the $75,000 that the typical American anticipates spending.

Fidelity’s figure is up 5% from last year’s mark, and more than double its calculation in 2002, the first year the company produced its Retiree Health Care Cost Estimate.

But “estimate” is an important word, given that healthcare costs vary widely and are impossible to completely foresee.

“Healthcare costs are among the most unpredictable expenses, especially when it comes to retirement planning,” says Robert Kennedy, Fidelity’s senior vice president of workplace consulting. “There is always opportunity to provide education around the cost of healthcare and the tools Americans have at their disposal to manage those expenses,”

Fidelity’s estimate rests on the assumption that retirees are enrolled in Parts A and B of Medicare, which typically cover doctor and hospital visits.

https://www.msn.com/en-us/money/personalfinance/retirees-will-pay-twice-as-much-as-they-think-for-healthcare-fidelity/ar-AA1otpyL#:~:text=A%20new%20study%20from%20Fidelity%20Investments%20has%20found,the%20%2475%2C000%20that%20the%20typical%20American%20anticipates%20spending.