Retirement healthcare costs going up: 5 things to know

Healthcare costs could grow at 1.5 to 2 times the consumer price index for the next two years, meaning a healthy 55-year old couple could be burdened with $160,000 to $267,000 in additional retirement costs, Healthview’s 2022 “Retirement Healthcare Costs Data Report” found.

Inflation is expected to rise to a 40-year high of 7.9 percent this year, according to the report.

The 2022 edition of the report, published March 16, focuses on long-term impacts of short-term inflation on retirement healthcare costs. Researchers analyzed inflation data from the last 40 years, 530 million medical cases and government and Medicare data.

Five report highlights: 

1. A short period of high inflation will increase retirement expenses significantly, even if prices return to normal in a short amount of time. 

2. Other factors boosting the cost of retirement healthcare expenses are: pandemic-related workforce shortages, rising wages, return of postponed procedures and expiring contracts between insurance companies and providers. 

3. If health cost inflation for the next two years is at 1.5 times CPI, lifetime retirement healthcare costs will grow by $85,917 for a 65-year-old couple; $160,712 for a 55-year-old couple; and $259,808 for a 45-year-old couple.

4. That 45-year-old couple will have to pay more for their projected retirement healthcare costs than the Social Security benefits they’re expected to receive.

5. Couples can address these problems by pursuing personalized, decumulation-focused retirement plans.

Read more here.

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