This Is How Much You’ll Pay for Health Care From Ages 65 to 85

This Is How Much You’ll Pay for Health Care From Ages 65 to 85 Photo by Dmytro Zinkevych / Shutterstock.com

One of the scariest unknowns of retirement is how much you’ll be expected to pay for health care. Now, Health View Services has tried to clarify the picture by projecting how much a retired couple would pay for care from age 65 to 85.

Using an average 4.22 percent retirement health expenses inflation rate, Health View Services estimates you will pay the following annual amount for Medicare Parts B and D, supplemental Insurance, dental insurance and out-of-pocket costs:

  • Age 65: $979 monthly, $11,752 annually
  • Age 70: $1,266 monthly, $15,196 annually
  • Age 75: $1,662 monthly, $19,942 annually
  • Age 80: $2,115 monthly, $25,385 annually
  • Age 85: $2,664 monthly, $31,966 annually

If the amounts look especially stiff in later years, it’s important to note that the projections are made in future dollars. But no matter how you calculate it, health costs are likely to be a major financial burden during retirement.

How to cut your health care costs

If those health care numbers are enough to make you sick, fear not: There are ways to trim these costs.

One method for cutting costs is to contribute in the years before you retire to a health savings account (HSA), which is available to those with a high-deductible health insurance plan. As we have pointed out in the past, HSAs offer one of the best tax breaks you’ll ever get, because:

  • The money is deductible from your income in the year of the contribution.
  • Gains on your contributions grow in the account tax-free.
  • Withdrawals are tax-free when they are used to pay for qualified medical expenses.

HSA limits are set to rise in 2019 to $3,500 for individuals and $7,000 for families. Plus, you can make an additional $1,000 contribution if you are age 55 or older.

Another way to save is to use a website to purchase your prescription medications. We offer a roundup of these sites in “7 Websites That Will Slash Your Prescription Drug Costs.”

Dental costs can add to the burden of keeping your body in tip-top shape. If you are looking for a way to cut the cost of caring for your choppers, check out “5 Ways to Slash Dental Care Costs.”

How do you keep health care costs low? Share your tips in comments below or on our Facebook page.

What's next?

Now that you've learned about critical components for a successful retirement, it's time to take the next step. To have the retirement you've dreamed about and the one you deserve, you need a plan that will show you:

  • How to discover fulfillment and live the retirement life you really want
  • Whether to downsize and where to live during your retirement years
  • A simple, proven system to destroy every debt you have
  • How to invest to reach your retirement goals and never outlive your savings
  • How to score up to $12,000 more in Social Security every year
  • Why you don't need a financial planner and how to be your own
  • How to stay in top shape and manage medical costs

The Only Retirement Guide You'll Ever Need is the plan that gives you the knowledge you need to approach retirement confidently -- with the peace of mind we're all after. Learn at your own pace, anytime you'd like, from the comfort of your home. Get expert, personalized advice and access to a special online community where you can connect with others and get your questions answered.

It's time to plan the best years of your life. Let's get started!

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