How to Save for Healthcare in Retirement | Fidelity

If you're concerned about healthcare costs, you're not alone. This video discusses the issue of healthcare costs in retirement — and how to better save for them. How much of your income do you defer for retirement savings? See how you stack up to your peers with our quick quiz: http://fidelity.com/retirementquiz. To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ______________________________________________________________________________ According to Fidelity Investments retirement savings assessment… More than 8 out of every 10 people have concerns about being able to afford health care costs in retirement….even though they underestimate the real cost. The average pre-retiree thinks they will need $50,000 in health care costs during retirement. But it’s estimated that the average couple will need $220,000 in health care costs during retirement. For some, the cost may be even greater. Spending on healthcare increases by 25% in the first decade after turning 65. And, naturally, the more health issues you have, the higher your income needs are going to be. For example, if you’re an active individual with a household income of around $80,000, but in poor health, our research shows that you may need an income in retirement of 96% of what you were earning while working. On the other hand, a person in the same situation, but in excellent health, may need just 77%. That’s a difference of over $15,000 per year. That’s why it’s so important to start saving for retirement as soon as you can. There are a number of ways to save more, too. (1) Consider investing a portion of any raises, bonuses, and tax refunds in a savings account. (2) Set a goal to increase contributions to savings plans by one percent every year. (3) put your savings on autopilot by signing up for an automatic withdrawal plan. (4) If your employer offers it, consider a health savings account, for contributions and investment earnings accumulate tax-free and roll-over from year to year if they are not spent. This can take a lot of pain out of saving for retirement health care costs. Wonder how prepared you are for retirement? Take Fidelity’s Retirement Readiness Quiz at https://www.fidelity.com/retirementquiz Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 681829.4.0

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