Posted by According to Fidelity Investments (Fidelity's newly released study on health care expenditure estimates for retired families1It was pointed out that 62.5% of the office workers surveyed hardly considered the issues after retirement.
And for the retirement expenses topic we are concerned about,American Life Insurance GuideDirectly selected report conclusions:If a 65-year-old couple announces their retirement in 2021, the expenditure on health care and medical treatment in their future retirement life is expected to require 30 US dollars, a record high.
For singles who will retire in 2021, the retirement medical expenses for men are $14.3 and the expenses for women are $15.7.
Retirement medical expenses will rise by 10% in 30 years
The forecast value for 2021,10% increase from 30 years ago—— 10 years ago, the retirement and pension medical expenses were $23.
And 20 years ago, Fidelity Investment predicted that retirement medical expenses were $16.
There are also some very optimistic interviewees that they may only need 5 US dollars, or less, to pay for health care after retirement.
Fidelity Investment’s estimated expenditure assumes that both spouses already have retirement red and blue card (Part A, B, D) medical insurance coverage.
Deposit $300,000 or more
Fidelity said that the estimate of retirement medical expenses is also to call on young people to take action as soon as possible, so that young Americans can start saving early and continue to save, because medical expenses may continue to rise.
Save money for retirement income and save money for retirement medical care
Specific to the retirement planning of each of us, it can be roughly divided into two parts.
- One is to prepare for the daily income after retirement,
- The second is to prepare for medical expenses after retirement.
According to Fidelity's data, the amount of savings for these two purposes continues to grow.According to Fidelity's customer data, at the end of 2020, the amount of savings in 401(k), 403(b) and IRA accounts has reached a new high.
At the same time, the number of Americans’ Health Savings Account (HSA) accounts has increased by 19%.Overall HSA assets increased by 52% last year, surpassing the $100 billion mark.
According to Fidelity Investment’s introduction, using the HSA health savings account to save money, if the deposit is full every year, and calculated at the predicted annualized investment return rate of 7%, a couple will save up to $18 in 30 years. After 30 years, there will be an account balance of $100 million.
Use "insurance" to strengthen retirement safety nets
For families with higher incomes, we can also make a layer of retirement income and retirement medical expenses.Insurance safety net coverage, To further protect our financial health.
according toAmerican Life Insurance GuideThe community’s prediction, a family composed of a healthy 35-year-old couple, usingCash value life insuranceAccount to proceedSupplementary retirement incomeFor savings, the same amount of HSA is deposited every year (the upper limit is $2021 per person in 3600). After the age of 65, a couple can also use the insurance policy to provide stable retirement income funds.
And useLong-term care insurance, After planning during the age of 45-60, through a 10-year or 5-year payment cycle, about 20 yuan can be locked in with the same amountLong-term careCompensation fund pool to supplement the medical expenses of the whole family.
The new crown epidemic has changed the concept of retirement
Fidelity believes that even if there is a retirement plan, it needs to be adjusted over time.
In the study, 82% of Americans believe that last year’sNew Crown OutbreakChanged many people’s retirement plans,Among them, two-thirds of the interviewed people said that they want to retire earlier.
80% of the respondents are under 65 years old. Therefore, in order to achieve this goal, it means that everyone needs to be more fully prepared for retirement income and retirement expenses. (End of full text American Life Insurance Guide）
1. “Here's How Much a Couple Retiring in 2021 Will Need for Medical Costs: Fidelity”, 05.10.2021.https://bit.ly/2RMALpC
