A recent Associated Press article reported that the average retired couple is facing $220,000 in medical bills during retirement. If that number astounds you, you are not alone. A recent Fidelity poll found that 48% of pre-retirees between the ages of 55 and 64 estimated that they would only need less than a quarter of that amount—only $50,000—to cover their health care costs in their golden years.
We have previously written about the importance of adjusting your financial planning to the new norms in retirement due to increased longevity and steadily increasing costs of healthcare. The AP article mentioned above highlights three initial steps you could take to better financially prepare yourself for what is to come: 1) seek financial advice, 2) consider a health savings account as a vehicle to save money, and 3) consider a deferred annuity, such as a fixed indexed annuity, as a way to set aside savings and secure a steady and guaranteed stream of income that you can’t outlive.
Now is the time to plan for the future. To learn more about whether or not a fixed indexed annuity may be right for you, check out our newest educational video.