By Angela Pecoraro for ThinkAdvisor on January 27, 2020
Back in 2018, the U.S. Census Bureau made headlines with a series of shocking population projections, including a rise in the ratio of older to working-age adults. The Census Bureau predicted that by 2020, our country would have approximately 3.5 working-age adults for every person of retirement age. Now that 2020 is here, financial advisors can take steps to position themselves as more valuable partners to both of those age cohorts by empowering them to calculate, and plan ahead for, their expenses in retirement with greater precision.
As more baby boomers reach age 65, and lifespans continue to increase, one of the biggest concerns for retirees and workers alike is the cost of health care during retirement. Fidelity’s most recent annual Retiree Health Care Cost Estimate predicts that a 65-year-old couple retiring in 2019 could spend up to $285,000 on health care and medical expenses throughout their retirement years, up from the $280,000 estimate in 2018. Fidelity also estimated that single men and women who retired last year may incur up to $135,000 and $150,000, respectively, in health care and medical expenses in retirement.