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According toFidelity, the cost of health care will be one of your largest expenses after housing and transportation.
My advice is to overestimate rather than underestimate these expenses, he said.
With proactive planning, cost management strategies and supplemental insurance options, healthcare can remain affordable for most retirees.
But underestimating the need for medical care as you age is one of the biggest mistakes in retirement planning.
This holds even if youre 65 and eligible for Medicare.
Private insurance for these services averages $1,000 to $1,500 yearly.
According to Harris, other services Medicare doesnt cover are acupuncture, cosmetic surgery, private-duty nursing and orthotics.
These out-of-pocket costs can be $2,000 to $10,000 per year depending on ones needs, he said.
Dont assume drug prices will remain stable; plan for increases and talk to your doctor about lower-cost alternatives.
Long-Term Care Expenses
Harris said that long-term care costs are substantial and not covered by Medicare.
Dental insurance or membership plans help budget for these unpredictable costs.
The average Medigap policy costs around $2,000 per year.
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