When it comes to expenses in retirement, healthcare costs have the potential to be a big-ticket item. And as inflation surges in healthcare outpace the rate of general inflation, these costs are only mounting. For workers nearing or entering retirement, healthcare costs are expected to consume a portion of their retirement budget – a concern shared by workers of all generations. So, how much, should you expect to pay – and budget – for healthcare expenses in retirement?
As you plan for healthcare expenses throughout retirement, the most important thing to do is to approach the matter with a realistic budget. While healthcare costs only continue to increase, some proactive financial planning today can help prevent these costs from eating into your retirement savings in the future. And if you could use another source of funds to help offset healthcare expenses, tapping into your home equity with a reverse mortgage could be a viable option.