If you ever needed motivation to save money for your own retirement, consider the cost of health care and the massive bite it will take out of your Social Security check.
The projected tab for an average, healthy 65-year-old couple retiring this year, in lifetime premiums for Medicare Parts B and D and supplemental insurance, is $288,000. Add in out-of-pocket expenses, including dental, hearing, and vision care, and the bill reaches $377,412.
A 65-year-old couple retiring this year would need 57 percent of their Social Security payments just to cover their health-care expenses. For a couple 10 years younger, with plans to retire in 2026, that jumps to 88 percent. For a 45-year-old couple, it’s 116 percent.
From 2015 to 2016, retirement health-care costs are projected to jump 7.3 percent.
A 30-year-old woman who retires at 65 will face about $119,000 more in expenses than her male counterpart, the report forecasts. That’s based on women living until age 91 and men living until 87. The figures, in today’s dollars, are $548,098 for women and $429,466 for men.