DANVERS, MA, December 8, 2020 – Since publishing its first data report in 2015, HealthView Services has continued tracking rising health costs. According to its new report published today, health care costs have risen by 65 percent over the past six years. Retired couples, including those who are healthy at retirement, could reasonably expect their health costs to reach $1 million through the course of their retirement years.
In its newest Retirement Healthcare Costs Data Report, HealthView Services explains how choices that even healthy couples make can change their healthcare cost projections from under $200,000 to more than $1 million. For a healthy 65-year-old couple retiring in 2021, total costs for premiums and out-of-pocket expenses will average $662,156. The report also explains that if this couple starts receiving Social Security payments at 65, healthcare expenses will consume 68% of their benefits, leaving far less than many might expect for other living expenses such as housing.
“Data show that when motivated by personal projections of retirement health costs, people increase their savings,” said Ron Mastrogiovanni Sr., chief executive officer, HealthView Services. “It is a sobering moment for many when they see their personal health cost projections, but it opens the door for advisors to build a multi-prong strategy that helps them meet their future needs.”
The 2021 report offers insights on health cost projections that can inspire clients to embrace a long-game strategy, demonstrating the real value that financial advisors equipped with access to data for personalized healthcare cost projections can bring to their clients. With this information, advisors can suggest a thoughtful portfolio of products that limits exposure to weighty modified adjusted gross income-based surcharges at time when financial flexibility may be more limited.
“All people want a secure, comfortable and independent retirement, but a 65 year-old couple will see their health-related expenses grow by an average of 5.9 percent each year through retirement, a substantial compounding of costs at a time when income is flat or declining,” said Michael Daley, director of marketing and the firm’s Medicare and Social Security policy expert. “The data in this report is valuable. It helps people understand their future health costs so they can plan for them.”
To download our 2021 Retirement Healthcare Costs Data Report, click here