During our working lives, health care costs have risen sharply. Everyone has faced higher health insurance premiums, higher deductibles, more expensive medications and increased costs for doctor's visits and hospitalization. After retirement, those costs will continue to go up, requiring a portion of your retirement savings to be set aside. The newest estimates suggest a couple will spend $275,000 on health care in retirement. Several factors will affect that number, including your overall health and your life expectancy. That estimate applies to those with traditional Medicare insurance coverage and considers premiums, co-payments, deductibles, and out-of-pocket drug costs. It does not take into account any costs for a nursing home, assisted living or long-term care.
As CNN Money explains, with that figure continuing to grow, it's important to start saving early. Workers can take advantage of health savings accounts where money can be added and grow through investments without being taxed, and taxes will not be charged if the money is spent on health care when it is withdrawn. Individuals can save up to $3,400 a year annually, or $6,750 for family coverage.
To help your viewers/readers/listeners understand the costs of health care and how health savings accounts can be a useful tool, talk with financial planners in your market. They can offer advice on how to save for future health care needs as part of a broader retirement strategy.
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