The $400,000 Gap Nobody Talks About: Healthcare Costs in Retirement
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You're planning for retirement. You’ve saved in your 401(k), maybe a Roth IRA, maybe even have a pension. But here’s a question most people don’t ask:
How much are you budgeting for healthcare?
Healthcare costs in retirement can quietly drain your savings—and many retirees are unprepared.
How Much Will Healthcare Really Cost After 65?
The math is eye-opening. The average American lives to 79. But those extra years come with costs most people don’t plan for:
Age Range Average Annual Healthcare Cost:
65–74 $6,500
75–84 $11,500
85+ $20,000
That adds up to over $400,000 across retirement—and that’s just routine care. Unexpected events can drive costs even higher.
What Are the Gaps in Medicare and Employer Coverage?
Medicare helps, but it doesn’t cover everything:
Long-term care: Not included. Medicaid only helps after you spend down most assets.
Unexpected events: Falls, chronic conditions, or extended assistance at home can quickly deplete savings.
Long-term care insurance: Costs around $1,500/year, often overlooked, but it can be a lifesaver.
How Can You Protect Your Wealthspan?
While you can’t eliminate healthcare risk, you can plan for it. Here’s what works:
Start Early: Estimate healthcare costs before retirement. Set aside dedicated savings.
Build Guaranteed Income: Ensure a reliable income stream to cover essential bills that can’t wait.
Consider Long-Term Care Insurance: Protects against high-cost scenarios that could wipe out your savings.
Invest in Preventive Health: Staying healthy now is one of the best financial moves you can make.
Wealthspan vs. Lifespan: What Really Matters
At Longevity Wealth Strategies, we focus on wealthspan, not just lifespan.
A long life without the money to enjoy it? That’s not wealth.
A big retirement account drained by medical bills? That’s not freedom.
Real wealth is being able to say “yes” to the life you want at 65, 75, and 85 without fear of running out of money.
Questions to Ask Yourself
Am I budgeting enough for healthcare in retirement?
Do I understand the gaps in Medicare and my current coverage?
How can I protect my wealthspan from unexpected costs?
If these questions make you pause, it’s time to take action.
Quick Take Away
Don’t let healthcare costs drain your retirement savings. Prepare by estimating costs, building reliable income streams, and investing in long-term health and insurance solutions to protect your wealthspan.
Take the first step. Schedule your Discovery Strategy Session today.
Disclaimer: The information provided is for educational purposes only and does not constitute investment, tax, or financial advice. Consult with a licensed professional before making financial decisions.
