- This is devastating news. Fidelity does a similar study and releases it every spring. They have been hovering around $225,000 to $250,000 in recent years.
- Retiree healthcare costs will consume 100% of all Social Security Benefits within 10 years.
Average health care costs for middle-income retirees are on a path to exceed their Social Security benefits, according to a newly created Retirement Health Care Cost Index as reported by
Mary Beth Franklin at InvestmentNews.com:
... Retirement health care costs will increase from 69% of Social Security benefits for a couple retiring next year to 98% of Social Security benefits for a healthy couple retiring 10 years from now, according to the index. For couples retiring two decades from now, the gap will be even more dramatic. They would need 127% of average Social Security benefits to cover their health care costs in retirement. ...
For an average healthy couple retiring next year, HealthView Services' data shows retirement health care costs will amount to about $366,600 in today's dollars. In another 10 years, costs will rise to approximately $421,000 in today's dollars, reflecting estimated health care cost inflation and expected Social Security annual cost of living adjustments.
The gap between estimated health care cost inflation of 5% to 7% per year and the 2% in expected annual cost of living increases in Social Security benefits means any Social Security increases will likely go to future retirees' health care costs. ...
