Let’s begin with one major question:

Why are medical costs on the rise?

Medical costs are rising for a number of reasons, including:

Increasing demand: As the population ages, the demand for medical care is increasing. This is because older people are more likely to have chronic health conditions that require ongoing care.

Rising prices: The cost of medical care is also rising due to factors such as the increasing cost of prescription drugs, medical technology, and hospital services.

Inefficient healthcare system: The US healthcare system is also inefficient, which contributes to higher costs. For example, there is a lot of administrative overhead in the system, and there is a lack of coordination between providers.

Why do medical costs need to be considered when retirement planning?

Medical costs are a major expense for retirees, and they can quickly drain retirement savings. According to the Fidelity Retiree Health Care Cost Estimate, a single 65-year-old retiring in 2023 may need approximately $157,500 saved to cover health care expenses in retirement. An average retired couple age 65 in 2023 may need approximately $315,000 saved.

There are a few things that retirees can do to plan for the rising cost of medical care:

- Get an estimate of your future medical costs. There are a number of online calculators that can help you estimate your future medical costs.
- Make sure you have enough savings to cover your medical costs. You should have enough savings to cover your basic living expenses, as well as your medical costs.
- Consider purchasing long-term care insurance. Long-term care insurance can help you pay for the cost of long-term care if you need it.
- Take advantage of Medicare and other government programs. Medicare and other government programs can help you pay for some of your medical costs.

Ready to Take Action?

​With medical costs and health care costs on the rise, long-term care being a need so many retirees need, now is the perfect time to take action and get a plan in place! Work with a Retirement Risk Advisor today!