Retiree medical costs expected to remain stable in 2023

Retiree medical costs expected to remain stable in 2023

Cheryl Costa, a certified financial planner in Framingham, Mass., said the estimates can sound intimidating, but it can be helpful to think about an estimate of annual or monthly costs instead of a lump sum. Over 20 years, he said, Fidelity’s average estimate sits at about $656 a month — which isn’t quite in line with what you’re already paying for health care.

“Keep it in perspective,” she said.

Carolyn McClanahan, a certified financial planner in Jacksonville, Florida, said there were many variables in health care costs, and future changes to Medicare rules were unpredictable. So, instead of focusing on general estimates for saving on retirement health costs, people should consider their specific situation, including how much they currently pay for health care, their general health status, their family history, and family history, he said. History and how much health care they use.

“What’s Your Health Care Mindset?” Ms. McClanahan said. That said, if you aren’t visiting the doctor as often and are exercising and maintaining a healthy weight, your out-of-pocket costs in retirement may be lower and you can budget accordingly.

Here are some questions and answers about health costs in retirement:

Financial advisors say health savings accounts, or HSAs, offer valuable tax advantages and can be a great way to save for retired medical costs — if you’re eligible to contribute. You must be enrolled in a high-deductible health care plan with a specified annual deductible (at least $1,500 for individual coverage in 2023).

The money is deposited before tax, grows tax-free and is not taxed when you withdraw it, as long as you spend it on eligible expenses. An individual can contribute up to $3,850 in 2023, plus an additional $1,000 for those over 55. (Once you enroll in Medicare, you can Will no longer contribute to HSABut you can use this money to pay for health and medical expenses.)

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

9 + 1 =