Fidelity Investments, a multinational financial corporation, conducted a study on the likely costs of health care for a recently retired couple and found that the projected costs had risen by a rather alarming 4 percent since last year.
This means the projected costs of health care for a newly-retired couple are around $240,000 until death.
This $240,000 projection has been met with worry, but Fidelity has said the increase isn't as bad as it could be, and cited President Barack Obama's Medicare changes for their optimism. The average increase since 2002 has been 6 percent.
Their predictions are based on an "average" 65-year-old couple who retire and use Medicaid but also include premiums, deductibles, and prescription costs. The study made a slightly generous assumption of a life expectancy of 85 years for a woman and 82 years for males. It's important to note that long-term care was not included.
However, this prediction could change, based on an upcoming vote by the Supreme Court on whether President Obama's health care plans will stick.
Of course, other variables would apply, including where a couple stand with their mortgages, pensions, savings, general health and other issues that are faced as people get older.
But based on the comments on this Associated Press story, published by Yahoo, retiring couples today, needing nearly one quarter of a million dollars for health care is a worrisome forecast.
Readers worry about needing so much money for health care, along with just living expenses. People called American health care a scam and a rip-off, especially due to the cost of prescriptions, and had others wishing for universal health care. Others are skeptical of the projections themselves -- wondering just how health care after retirement could cost so much.
Tell Us
Are you saving for health care after retirement? Are you surprised or worried about these numbers? Do you worry, like many others, that you can't afford to get old?
SOURCE:
Yahoo News. Health. "Retired couples may need $240,000 for health care". Web. Saturday, May 12th, 2012.
http://news.yahoo.com/retired-couples-may-240-000-health-care-040554853-...
Edited by Jody Smith