“Women over 50 are likely to enjoy decades in retirement,” notes the author of today’s article. That’s the good news for this group. The bad news? “Few have any idea how much medical expenses will eat into their savings.” Studies show that women aged 50 and over are largely unsure of what their health-care and long-term care costs will be in retirement – and when they do venture a guess there is a stark difference between their estimates and the reality of costs. So what is the reality when it comes to health-care and long-term care costs? CLICK HERE to find out.
$400,000. This is the amount the typical 65-year-old couple will need to save in order to pay for out-of-pocket medical and long-term care costs in old age, according to new estimates from Fidelity Benefits Consulting. As per today’s article, that amount is “$60,000 more than the typical couple’s entire savings at retirement, including equity in their home.” To read more about what the author describes as “a grim picture” – including the percentage of all 65-year-olds that will require at least some long-term supports and services before they die and what this all means for the typical couple, CLICK HERE.
With it being so often repeated that the key to a secure retirement is to start saving early and put enough into your 401(k) to get your employer’s match, today’s article argues that many investors are overlooking (or underutilizing) another important savings tool – health savings accounts: “According to some advisors, HSAs are also the Holy Grail of savings vehicles because of their rare triple-tax benefit. Contributions to HSAs are made with pretax dollars (in most states), assets grow tax-free, and distributions are tax-free if used to pay for qualified medical expenses or as reimbursement for such expenses.” Can you amass more wealth by contributing to a HSA first before contributing to your 401(k)? CLICK HERE to read more.