In Elder Law News

Person drawing graph labeled 'Retirement' on blackboard with piggy bank in foreground.It’s no secret that health care remains one of the biggest expenses facing American retirees. Coverage through Medicare, Medicaid, or another insurer will help mitigate these costs to some extent. Yet retirees still tend to pay tens of thousands of dollars for health care over the course of their retirement years.

A recent analysis estimates that retired households can expect to spend, on average, $67,000 in out-of-pocket health care costs over their remaining lifetime. This figure applies even for those who have health insurance coverage. Individuals who live longer may easily pay far more – upwards of $130,000 on average for those who live to age 90.

How Best to Prepare for Retirement

The average age of retirement in the U.S. currently stands at 65 for men and 62 for women, according to the Center for Retirement Research at Boston College, which also issued the analysis on retiree health care costs. Even if you are not planning to retire for some years, remember you can always:

  • Plan ahead. Amid rising inflation and longer life expectancies, planning ahead for retirement is more crucial than ever before. Make time to consult with a qualified financial advisor. A professional can help you determine the best approaches to saving and investing your money for retirement.
  • Educate yourself. Don’t put off learning about what options are available for retirement savings, including 401(k)s and IRAs. Before you retire, gain a better understanding of how much you may need in savings in order to maintain your lifestyle.
  • Figure out where else you may be able to save. For example, when you retire, you may no longer need to pay for a life insurance policy. If you were commuting to work, you may now realize savings on gas or car repairs and maintenance. At the same time, your automobile insurance may also offer a discount for senior drivers.

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