Budget $85,000 Additional for Retirement Healthcare Costs
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photo credit: Darren Hester
Though it may not be a dinner conversation topic, many Americans need to start preparing for retirement, specifically for the costs of long-term care. Current estimates state that $225,000 is necessary for basic health care, and a new study states that $85,000 will be necessary for long-term healthcare issues, such as home health aides and nursing home stays.
As lifespans increase, it’s necessary to plan well in advance, preparing for a time when we won’t be completely capable. Families often want to do the right thing, but without the proper financial planning, it can be difficult or impossible to take care of ailing family members.
The Boston-based study was designed to get baby boomers thinking about their own futures. Though it’s an unpleasant topic, it is an absolutely crucial consideration, and one that cannot be overlooked. Especially when planning for retirement, the extra $85,000 saved will go a long way towards making later life more comfortable and less stressful.
When planning for your non-working years, experts say that everyone should make sure to budget an extra $310,000 for your healthcare expenses. $225,000 will get you through the years, paying for health care premiums and incidentals. And, for when you’re older, your $85,000 surplus will take care of all the extras.
Tags: Budgeting | Health Care | Retirement
This entry was posted on Monday, July 7th, 2008 at 3:30 am and is filed under Budgets & Money Management. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
