TruCommunity Blog

According to the Centers for Medicare and Medicaid Services, the average American’s health care cost in 2000 was $4,672 while in 2022 the U.S. health care spending grew to $13,493 per person. For a retired couple that can equate to approximately $315,000 (after tax) needed to cover health care expenses in retirement. This number would cover costs such as insurance premiums, out-of-pocket expenses, and prescriptions but does not include the cost of long-term care.

It is important to determine when you will retire as the number may have a large impact on health-related expenses. Those who wait until age 65 to retire may have access to extended health care benefits through their employer, while people who retire at age 62 will need to cover insurance premiums out of pocket until eligible for Medicare at age 65. This may be important as chronic diseases affects approximately 6 in 10 older adults in the U.S. according to the CDC.

Long-term care costs are increasing in part as people are living longer. The National Council on Aging estimates that 70% of Americans turning 65 will need long-term care at some point. The Genworth’s Cost of Care Survey reveals the median U.S. annual private room nursing home cost in 2023 was $116,700 per year while in 20 years that number is projected to be $210,954 per year. The National Council on Aging also determined the average duration of long-term care for women and men was 3.7 year and 2.2 years, respectively.

Planning for healthcare costs and long-term care now may provide you with more choices and options you might not have considered, increasing the likelihood your funds will last as long as you do.

Focus Investment Services can help devise a plan that addresses your unique challenges and “what-ifs” about retirement. Contact Keri Blake ([email protected]) to work with you to find solutions that fit your unique circumstances, moving you along the path to the retirement you envisioned. It’s your retirement – make it a great one!

Products offered by Focus Investment Services are not FDIC insured or by any other Federal Government Agency, are not a deposit or obligation of, or guaranteed by TruBank, may involve investment risk, including possible loss of principal amount invested, and may lose value.