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How Much Will You Really Need for Healthcare Costs in Retirement?
Retirement News, Financing Retirement, Healthy Living, Retirement Tips

How Much Will You Really Need for Healthcare Costs in Retirement?

Did you know that a healthy 65-year-old couple that retired in 2019 will need close to $390,000 to cover healthcare expenses, including Medicare Parts B and D? It’s no surprise that the National Council on Aging found that medical debt is one of the larger obstacles between older citizens and economic well-being.

Determining how much you might need depends largely on your plans for the future:

  • Are you relying on family members to provide care?
  • How do you plan on paying for out-of-pocket medical costs?
  • Can you afford nursing home care?
  • Would you rather have in-home care as you age?
  • Do you have long-term care insurance to supplement Medicare coverage?

When extra care is needed…

Those without long-term care insurance often start out relying on an unpaid family caregiver, but eventually, many need paid help — and that can be expensive.

According to Genworth's 2019 Cost of Care survey, the national average bill for a home health aide is $4,385 monthly, varying widely depending on your location and needs. Though Medicare may cover part of the costs for at-home medical care, it does not reimburse families for personal care such as medication reminders, bathing assistance, errands, shopping, and transportation.

For individuals requiring more robust care options, assisted living costs approximately $4,000 per month depending on where you live. This cost is predominately paid out of pocket, but financial assistance may be available for some. Nursing homes, on the other hand, are approximately $7,500 per month and are generally covered by Medicaid. Medicare typically covers up to 100 days of nursing home care, after which you’re on the hook for further long-term costs.

READ MORE: Healthcare Challenges That Every Retiree Should Have on Their Radar

A closer look at the numbers

According to the Kaiser Family Foundation, out-of-pocket health costs for older Americans covered by Medicare will consume up to 50% of the average Social Security income by 2030. Prescription drug costs remain a major issue, especially for the chronically ill. You’ll also need to plan for common medical services that may or may not be covered — think dental care, hearing aids, or glasses. And if you need hospitalization, the average cost of a three-day hospital stay could you set you back $30,000.

New thinking on retirement healthcare options

The ongoing COVID-19 pandemic has been a huge wake-up call regarding the healthcare system. It’s important to know your options so you can choose wisely when deciding on the best care options for you.

If you’re thinking about a healthcare cost game plan, there may be some financing options you haven’t considered, such as leveraging your home equity via a reverse mortgage. If you'd like more information, or to schedule an in-person discussion with a loan specialist in your area, call Reverse Mortgage Funding LLC (RMF) at (888) 277-1567.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.7-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

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