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Retirement Healthcare Costs 20% More for Women Than Men, Study Finds

Commentary on the Wall Street Journal article by Anne Tergesen

Women live on average two years longer than men and therefore must be prepared to pay 20% more for their retirement healthcare coverage, according to a recent HealthView Services report, the Wall Street Journal writes. 

Longer Life Expectancy, Annual Healthcare Costs Increases, Surcharges and More

The report concludes that a retired 65-year-old woman can expect to spend more than $235,000 over her remaining years on healthcare premiums. That’s $35,000 more than men. The projections take into account an estimated 6% increase in healthcare costs annually, the Journal writes.

According to Ron Mastrogiovanni, founder and chief executive of the company, retirees can expect other out-of pocket expenses including Medicare supplement insurance for copayments and deductibles, and Medicare Parts B and D for outpatient care and prescription drugs, according to the publication.

Affluent retirees can expect additional costs, according to the publication. Singles who make over $85,000, or couples whose income exceeds $170,000, pay high surcharges on Medicare Parts B and D premiums, the Journal writes. What’s more, dental, hearing and vision care fees will add roughly $70,000 to retirement healthcare costs for both men and women, as Medicare doesn’t cover any of these, according to the Journal.

But Mastrogiovanni says that women can prepare for these costs. A 55-year-old woman can invest $25,500 at a 6% return, which can cover the last four years of her life, when it is statistically likely she will be a widow, the publication writes. If any long-term care like assisted living services might be needed, a 55-year-old woman should plan to set aside $61,200 with the same 6% return, according to HealthView Services. Long-term-care insurance can also help offset these costs, according to the Journal.

Women can also keep their modified adjusted gross income under Medicare surcharge levels by spending Roth individual retirement money instead, or funds from a health savings account, Mastrogiovanni says. Money spent from these accounts aren’t calculated to determine MAGI, he says, according to the Journal.

Additionally, married couples can wait a bit longer to claim the higher earner’s Social Security benefits, which can be taken anytime after the claimant is between the ages of 62 and 70 years and are higher the longer the spouse waits, according to Mastrogiovanni, the publication writes.

Furthermore, financial advisors say that couples can buy annuities and life-insurance policies to ensure the surviving partner can cover the bills, the Journal writes.

Source: The Wall Street Journal

Posted by: The Wealthy Doctor

Permalink: http://wealthy-doctor.com/retirement-healthcare-costs-20-more-for-women-than-men-study-finds

Retirement Healthcare Costs 20% More for Women Than Men, Study Finds - overview

Summary: Women live on average two years longer than men and therefore must be prepared to pay 20% more for their retirement healthcare coverage, according to a recent HealthView Services report, the Wall Street Journal writes.

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