It’s not easy trying to figure out how much money you will need in retirement; financial experts, doctors, real estate agents and others often have different estimates, based on your age, location, health, and many other factors, and now another financial firm has added their thoughts.
As reported by ABCNews.com, Boston-based Fidelity Investments now estimates that newly-retired couples will need about $240,000 over the course of their retirement for healthcare expenses alone. This year’s number rose four per cent from $230,000 in 2011.
“As long as health care cost trends exceed personal income growth and economic growth, health care will still be a growing burden for the country as a whole and for individuals,” one of Fidelity’s actuaries, Sunit Patel, told the news source.
One of the reasons for the increase in the last year – which is actually lower than the average six per cent increase of recent years – is due to changes in healthcare costs. As well, because the U.S. Supreme Court recently struck down parts of the Obama healthcare legislation, so the numbers may still be updated.
The thought of needing almost a quarter of a million dollars for healthcare in retirement alone can be daunting, but with proper research, Baby Boomers can be prepared, and they can then prepare for any move they make, including into an assisted living community.