Retirement Planning

How Rising Healthcare Costs Will Affect Future Generations of Retirees

Healthcare is likely going to be one of your biggest expenses in retirement. Read this article for helpful information to plan for your future needs.

Affect of Healthcare Costs on Retirement

Your retirement plans are in place but have you considered how healthcare costs may affect them? We're all living longer. And most of this longevity can be attributed to leading more active, healthy, and smoke-free lifestyles, as well as advances in medical treatments. But just because we are living longer doesn't mean we're going to remain healthy throughout our entire lifetime. The fact is, while some of us will continue to live healthy lives throughout our senior years, many of us may experience chronic health conditions such as diabetes, heart disease, and/or arthritis as we grow older.1

While some of these costs may be offset by health insurance plans, much will be paid out-of-pocket. In fact, the Centers for Medicare & Medicaid Services estimate that out-of-pocket spending for health care is projected to grow at an average of 4.4 percent through 2019.2

The reality is that medical expenses may be a very real (and substantial) cost for retirees, especially with us all living longer. So what can you do about it?

  • Don't presume that Medicare and Medigap insurance will cover all of your healthcare expenses.
  • Get familiar with what is and isn't covered under Medicare and Medigap plans so you'll have an idea of what type of supplemental insurance you may need not only to help fill the gap, but what you could be facing in the way of additional premiums.
  • Project your future medical/healthcare needs. Although you can't predict the future, your family history may give you an indication of what type of care you might need when you retire. For example, does high blood pressure or heart disease run in your family? What about diabetes?
  • Factor in the cost of long-term care services. Remember, Medicare won't pay for non-skilled long-term care services, and Medicaid only pays out if you and your spouse meet specific income and asset criteria.
  • Include the cost of healthcare in your retirement plan. A qualified financial advisor can help you determine how much you should be setting aside and what adjustments you should be making so that you're not completely blindsided by healthcare costs when you retire.


Was this article helpful?

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.