Consolidated Credit is a big believer in online calculators. Done right, they can show you how much a mortgage will cost and the cheapest way to pay off your credit cards.
This week, AARP released its free online Health Care Costs Calculator, which estimates your health costs when you retire. How? It draws from a database that includes $136 billion in costs from actual health care claims. As AARP explains…
Individuals can select from 82 medical conditions to estimate how much they may need to spend on out-of-pocket health care costs. The calculator also assumes that individuals will be eligible for and select Medicare Parts A, B and D.
“The free Health Care Costs Calculator can play an important and often overlooked role as families and individuals plan for retirement,” says Jean Setzfand, the AARP’s vice president for financial security. “Health care costs can have a significant impact on retirement savings. With this calculator, AARP aims to help more Americans confidently plan for and achieve retirement goals.”
A related AARP study found that “just one third (36 percent) of older Americans have taken any steps to save for out-of-pocket health care expenses, though multiple studies show that such costs often reach significantly more than $200,000 for a retired couple.”
Consolidated Credit recommends the AARP Health Care Costs Calculator, and if you want more information on how to plan effectively for retirement, check out Consolidated Credit’s seven-part series, Planning Your Golden Years: A Retirement Guide.