Do you have a strategy to pay for health care in retirement? Medicare will cover many of your expenses, but it won’t cover everything. You’ll still face premiums, copays, deductibles and other costs. According to a study by Fidelity, the average married couple will pay $275,000 for out-of-pocket medical expenses in retirement. That figure doesn’t even include the cost of long-term care.1
As you get older, it’s possible that you may become more vulnerable to injury and illness. In the later years of retirement, copays for prescription drugs and medical treatment may eat up a big chunk of your monthly income. You could require treatments and services that aren’t covered by Medicare at all, such as dental, vision or physical therapy.
Approaching retirement soon? If so, you’re probably thinking about income—specifically, where your income will come from in retirement. You’ll probably draw income from multiple sources, including Social Security, retirement account distributions and possibly even a pension.
While Social Security is helpful, it usually isn’t sufficient to fund a comfortable retirement. That’s why many retirees also rely on withdrawals from their savings and investments. Unfortunately, that income usually isn’t guaranteed. A market downturn could impact your income. Or you could deplete your assets if you live longer than expected.