Health care costs are rising especially for retirees, and many will need long-term care. Learn the moves you can make to help prepare yourself. Longer lifespans and rising health care costs are driving investors to control their financial exposure to uncovered bouts of care – particularly in retirement.
According to the U.S. Centers for Medicare and Medicaid Services, the U.S. spends approximately $3.5 trillion a year on health care, or nearly $11,000 per person. Overall spending rose 3.9.6% in 20171, faster than the pace of inflation or wage growth. As spending rises, patients are also shouldering a larger share of treatment costs – driving up out-of-pocket expenses. The elderly, who require the most care, often bear the brunt of the costs.
It is important to take steps to minimize your financial exposure to uncovered medical costs. But whereas your incentives for saving for retirement are easy to digest – to be able to afford a desired lifestyle after your working years -planning for the less palatable aspects of old age can be more challenging.