When helping clients plan, one aspect that is becoming more and more important is planning for health care costs. One question I get asked often is: “How much should I plan to spend on Medicare and other health care costs in retirement?”
A rule of thumb we use for health care costs in retirement is a monthly cost of $500 per person. This estimate includes Medicare Parts A, B, D, any supplement plan, as well as out of pocket expenses.
This $500 per person, per month figure comes from a study done by Fidelity Investments, which estimates that a 65 year-old couple would need a lump sum of $245,000 to cover future costs of health care. Assuming 21 years of retirement (life expectancy of a male of 85, and a female of 87) this results in $12,250 per year or just over $1,000 per month for a couple.
Of course, each situation is different, so when you (or family members) are wondering what to expect for health care costs in retirement, I am always happy to be a resource.
Source: https://advisor.fidelity.com/app/item/RD_13569_29196.html