Count on This in Retirement: High Health Care Costs

Also: The Average Tax Refund Is 11% Smaller Than Last Year So Far
͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
February 22, 2023
Retire with Money

The projected amount people will need to meet their health expenses in retirement remains higher than you might think — maybe even the highest cost you’ll face after you stop working. For more than 20 years, Fidelity has estimated how much the average 65-year-old couple will need to cover health care costs throughout their retirement. Here’s how the price tag has changed:

The annual Fidelity estimate includes costs for Medicare Part B and D premiums — the costs not covered by Medicare Part A — and supplemental insurance. (The estimate does not account for long-term care costs.)

What’s the best way to cover your costs? In addition to traditional Medicare, you’ll most likely want to buy supplemental insurance, either in the form of a Medigap plan — also known as Medicare Supplement Insurance, offered by private insurers — or Medicare Advantage, a plan that includes Part A, Part B, and usually Part D. 

According to the Employee Benefit Research Institute (EBRI), a 65-year-old who has saved $96,000 (if male) and $116,000 (if female) is still going to face a substantial shortfall in meeting the costs of premiums and prescription bills. 

In some cases, EBRI found, a Medicare Advantage plan — some have no premium, whereas Medigap plans always have premiums — may save some people money over  traditional Medicare. But keep in mind, these plans generally have limited provider networks or might require approval before covering certain medications or services.  

For more on how retirees pay their expenses, read our reporter Mary Ellen Cagnassola’s story on income sources in retirement

— Jill Cornfield, deputy editor

P.S. If you got this newsletter from a friend, sign up here for email delivery to make sure you don't miss the next issue.

 

More Insights and Advice from Money

 

The average amount of an IRS refund for the 2023 filing season looks like it could be smaller than last year. One reason: No one’s getting stimulus checks or expanded child tax credit payments this time around.

 

Americans are going deeper into debt at the fastest rate in two decades as they continue to spend and borrow amid high inflation and elevated interest rates.

 

Buying a new car became just a bit more affordable in January as prices declined and incentives increased. It now takes 44 weeks of median U.S. income to purchase the average-priced new vehicle — a drop from 44.7 weeks the month before.

 

Older homebuyers are more likely to be rejected than younger ones when they apply for a mortgage, according to the Center for Retirement Research at Boston College.
 

 

Retirement 1, 2, 3

 

  • How much time can you really spend on the golf course? With rising longevity many people will likely need and want to work for more years.
  • Retirement on the open road: “I’ve visited 2,800 places since retiring full-time In an RV.”
  • Where to live in retirement? Continuing care communities start off in an independent townhome or condo, and guarantee acceptance for one or both spouses into assisted living or memory care.

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money.

Privacy PolicyAdvertise With UsWe're Hiring!

To stop receiving these emails, unsubscribe or manage your email preferences.

Copyright ©2023 Money Group, LLC. All rights reserved.

Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA

Key phrases

Older messages

Issue #180: There are no stupid questions

Wednesday, February 22, 2023

plus Clint Eastwood's squirrels + Frankie Muniz ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Issue #179: Savings are meant to be spent (... right?)

Friday, February 17, 2023

plus bear selfies + Hayley Williams ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

When Retirement Seems Like a Long Shot

Tuesday, February 14, 2023

Also: Workers Are Moving to These 5 US Cities More Than Anywhere Else ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Apparently nobody cares about this part of a check

Wednesday, February 8, 2023

plus the JoBros star + spendy fish ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Issue #177: Should I get a safe for my financial documents?

Wednesday, February 1, 2023

plus Bieber's big sale + SPAM merch ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

You Might Also Like

🤝 Amazon doubled down on AI

Thursday, March 28, 2024

China's green energy goodies are too cheap for the US | Amazon doubled down on Anthropic | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 29th in 3:12 minutes. 🌞 As

🤝 Amazon doubled down on AI

Thursday, March 28, 2024

China's green energy goodies are too cheap for the US | Amazon doubled down on Anthropic | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 29th in 3:12 minutes. 🌞 As

China’s ‘lost decade’

Thursday, March 28, 2024

Bloomberg Evening Briefing View in browser Bloomberg Ray Dalio has a warning for China. The hedge fund titan says the country should cut its debt and ease monetary policy or face “a lost decade.” China

Looking to buy a home? Good news.

Thursday, March 28, 2024

Don't miss out on lower mortgage rates ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

This woman made investing history

Thursday, March 28, 2024

And so can you. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Simple Solution Worth Billions to Walmart and Amazon

Thursday, March 28, 2024

The following is a third-party sponsored message. It should not be considered a recommendation or endorsement by HS Dent Publishing. Dear Investor, In warfighting, there's a saying: "Amateurs

Markup matters: monetary policy works through aspirations

Thursday, March 28, 2024

Tim Willems and Rick van der Ploeg Since the post-Covid rise in inflation has been accompanied by strong wage growth, interactions between wage and price-setters, each wishing to attain a certain

🇯🇵 Japan's latest low

Wednesday, March 27, 2024

Visa and Mastercard cut merchants some slack | Japan's yen hit a 30-year low against the US dollar | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 28th in 3:14

‘Out of the blue’ correction

Wednesday, March 27, 2024

Bloomberg Evening Briefing View in browser Bloomberg With a number of market watchers warning of a bubble, traders are increasingly on the lookout for signs of the cliff's edge. But if you ask

🗺️ Your guide to a finance mega-trend

Wednesday, March 27, 2024

Plus, “money dysmorphia” and how to choose between a 401(k) and IRA. ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌