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Cheryl Costa, an authorized monetary planner in Framingham, Mass., mentioned that the projections may appear scary however that it might assist to consider the estimates in annual or month-to-month prices, slightly than a lump sum. Over 20 years, Constancy’s common estimate works out to about $656 a month — not out of line with what you might already be paying for well being care, she mentioned.
“Maintain it in perspective,” she mentioned.
Carolyn McClanahan, an authorized monetary planner in Jacksonville, Fla., mentioned that there have been many variables in well being care prices, and that future modifications to Medicare guidelines have been unpredictable. So slightly than specializing in generic estimates to save lots of for retirement well being prices, she mentioned, individuals ought to take into account their particular scenario, together with what they presently pay for well being care, their basic well being standing, their household historical past and the way a lot well being care they use.
“What’s your well being care mind-set?” Ms. McClanahan mentioned. If you happen to don’t go to the physician that usually and also you’re exercising and sustaining a wholesome weight, your out-of-pocket prices in retirement could also be decrease and you may funds accordingly, she mentioned.
Listed here are some questions and solutions about well being prices in retirement:
Are well being financial savings accounts helpful for retirement well being prices?
Well being financial savings accounts, or H.S.A.s, provide precious tax benefits and may be a good way to save lots of for retiree medical prices, monetary advisers say — in case you qualify to contribute to 1. You have to be enrolled in a high-deductible well being care plan, with a particular annual deductible (a minimum of $1,500 for particular person protection in 2023).
Cash is deposited pretax, grows tax free and isn’t taxed whenever you withdraw it, so long as you spend it on eligible bills. A person can contribute as much as $3,850 in 2023, plus an additional $1,000 for these over 55. (When you enroll in Medicare, you possibly can not contribute to an H.S.A., however you should use the funds to pay for well being and medical bills.)
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