Retirement Planning Isn't Complete Until You Consider These Hidden Healthcare Costs
Many retirees plan for Medicare premiums, prescription drug coverage, and perhaps long-term care insurance. Those expenses are important, but they're not the only healthcare costs that can affect your retirement plan.
Fidelity estimates that a 65-year-old couple retiring in 2025 may spend roughly $330,000 on healthcare during retirement, excluding long-term care. Even that estimate doesn't capture every potential expense. Here are three often-overlooked costs worth considering..1
Prescription Drugs Not Covered
Medicare Part D now limits annual out-of-pocket costs for covered prescription drugs to $2,000. However, the protection only applies to medications included in your plan's formulary. 1
If an expensive medication isn't covered, your costs could be substantially higher. Because formularies change each year, reviewing your prescription drug plan annually is an important part of retirement planning.1
The Hidden Cost of Living Remotely
Many retirees dream of moving to a quiet lake, mountain community, or rural town. While these locations can offer an exceptional quality of life, they may also limit access to hospitals, specialists, and emergency care.
Before relocating, consider not only today's healthcare needs but also how easily you'll be able to receive care 10 or 20 years from now.1
Concierge Medicine
Concierge medicine is becoming more common in many communities. Patients pay an annual or monthly membership fee in exchange for benefits such as longer appointments, same-day scheduling, and direct access to their physician.
While the added convenience can be valuable, the membership cost is another healthcare expense that should be factored into a retirement budget.1
Preparing for What’s Next
Healthcare expenses continue to evolve throughout retirement. Reviewing your Medicare coverage, prescription drug plan, access to medical providers, and potential out-of-pocket costs can help reduce unpleasant surprises later.
A comprehensive retirement plan should account not only for expected medical expenses, but also for the unexpected.
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