We have all heard that the future cost of health care is a huge retirement wild card. I consistently read retirement health care cost estimates in the low to mid six figures. At 65, we are eligible for Medicare but it doesn’t cover everything. Also, are these general cost estimates applicable to all of us? Not necessarily. In some cases, luck is involved. In other cases, your current health status can be a predictor of future costs. A free tool from the AARP tries to take all of that into account to give you a number that you can work with, a number that will scare you, or both!
I used the estimator tool this morning. The results were interesting. The tool predicted that my total health care spending during 23 years of retirement (no working at all) will be $238,581. I think I am lucky here because my weight is where it needs to be, my blood pressure is normal, and I reported only two “conditions” from health problem check list: knee arthritis and nasal allergies.
The tool estimated that $151,812 of my retirement medical expenses will be covered by Medicare. It also predicted that my HSA account will be large enough to cover the remaining balance of $80,769. (I don’t spend any HSA money now.) I hope this is accurate. Of course, it only takes one future serious problem like heart disease or cancer to blow this estimate up.
The last section of the tool outputs a customized “action plan.” This includes providing information about your various reported health conditions, etc. I suspect that for some folks who use the tool and need more help the AARP may try to sell you something. But don’t worry about that because no personally identifying information is required to use the tool.
I encourage you to give the tool a try and put your own plan in place, as needed. Here is the link: Health Care Costs Estimator Tool