Projected Health Care Costs In Retirement

Discuss your Retirement Healthcare

It is an important part of your financial planning to factor in estimated health care costs in retirement to your plan. There is no way to put it lightly, Your health is expensive and it is only getting more expensive. Regardless of whether you are an individual entering into retirement with zero assets planning to live solely on Social Security, or if you have accrued a large “nest egg” to get you through your golden years – health expenses and care in general, are not cheap. They cost money and a lot of it. If you have taken the time to build a financial retirement plan, either on your own or with professional guidance, it is essential that you keep it updated with care expenses for retirees.

Health Care Costs In Retirement Are On The Rise

Health care costs in retirement are projected to continue to rise over the next decade. This spells bad news for those Americans who were unable to accrue any assets during their working years and who had planned on living solely on Social Security – more on that later.

According to The Medical Board of Trustees report the costs of Medicare for retirees is projected to continue to increase at a rate of 7 percent over the next ten years. This may not be all that bad, or rather perhaps would not have had that much of an impact on retirees health costs if Social Security benefits were projected to rise at the same inflation rate. Unfortunately, though, they are not. In fact, they are estimated to remain rather constant – with a projected 2 percent increase max – and even hold a chance to decline.

Social Security Benefits Not In Line With Health Care Costs In Retirement

It has been said before, but needs to be said again – Medicare does not cover all health expenses in retirement. That being said, if you are one of the many Americans who are planning on coasting your way through retirement living just on your Social Security benefits things are not looking so good for you as your care expenses most likey will increase.

A report released this year revealed that a 66-year-old couple that was retiring this year and expected to receive average Social Security benefits, could expect that their projected costs of health care in retirement would consume 67 percent of their Social Security.

The news is even grimmer for a 55-year-old couple looking to retire in 10 years, as they can expect that their health care costs will eat up a whopping 90 percent of their total Social Security benefits.

The increases in medical costs and leveled out Social Security benefits spells a certain cause for concern for the 66 percent of Americans who rely on their earned Social Security benefits to account for over half of their retirement income.

Health Care Costs In Retirement Expected To Rise, Legislation Forces Americans To Pay

As health costs in retirement is expected to continue to rise, and Social Security benefits are expected to remain constant or even decline, Americans are expected to pay. Legislative changes pushed through with extensive Congressional provisions has led to an increase in taxes, increase in health care costs in retirement, and decreased Social Security benefits. With that health care premiums have been made mandatory.

In 1993 a change to the Programs Operation Manual system for Social Security made it mandatory that all eligible seniors enroll in Medicare or otherwise forfeit all past, present and future earned Social Security benefit rights. Luckily, in 2003 additional changes were made that allowed seniors to enroll late. However, with late enrollment comes a Late Enrollment Penalty that will stay with the retiree for the remainder of their life.

This marks the first time in history that retirees will face mandatory medical expenses.

Who does this Affect?

If you are among the Americans that are considered “high-income” – meaning that as a single person, you earn $85,000+, or $170,000+ as a couple – then you can expect your projected health care costs in retirement to be docked with surcharges ranging anywhere from 20 to 200 percent.

Do You know Your Individual Projected Health Care Costs In Retirement?

Have you begun your financial planning for the future? Do you know what your health care could cost you?

Whether you are tackling your financial planning for retirement on your own, or if you have help from a professional, it is recommended that you estimate and factor in your potential medical expense. Using our FREE online calculator will give you the tools and knowledge needed to construct a more accurate financial plan reflecting your individual projected health care costs in retirement.

What is

Healthcare Retirement Planner (HRP) is a comprehensive solution that helps identify potential problem areas in a retirement plan and design options to minimize the problem.

On an ongoing basis, HRP conducts research and aggregates all data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate information and calculations available.

Within the calculation process there are many variables that need to be considered, as the solutions are customized to each individual’s retirement plan. Variables that are required to analyze financial situations include, but are not limited to: age, gender, location, overall retirement income, types of retirement income, inflation and COLA. HRP has simplified this process.

Is it difficult?

The process of using HRP is straight forward. Simply by answering a few simple demographic questions, entering retirement asset information and income, along with assorted growth rates, you are supplied with a detailed year by year analysis that projects out 20+ years as to how the investors’ current financial plan will be impacted by their Medicare and the impact on their Social Security benefit.

Who is Jester Financial?

We are comprised of Financial Professionals, Medicare Specialists, Technology Experts and the foremost authorities on how this one cost will affect your bottom line especially when your health is on the line.

There are many financial institutions that do tremendous work when it comes to asset building, planning for college or creating stock/bond/mutual fund portfolios, but addressing concerns of affording care…well for that, there is us.


Healthcare Retirement Planner was created with one purpose in mind: to provide data, education and tools necessary to help the financial industry create better financial futures and to plan for one of the biggest expenses in not only retirement, but life – their health.

In a time where health dominates the media, the political landscape and your bottom line, planning with all of the facts have never been more important.

Origin of Our Data for Healthcare Cost in Retirement

On an ongoing basis, HRP conducts research and aggregates all Healthcare data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate Retirement information and calculations available.


Jester Financial Technologies offers research and Service to the Financial Industry, however we do not sell retirement products the general public