Out-of-pocket costs in retirement may shock you

According to a 2024 Fidelity study, retired couples with Medicare coverage will still spend $315,000 in out-of-pocket health care costs.? That amount is likely to continuing rising.? I recently conducted a poll on Linkedin and 83% underestimated this fact.

Equally concerning, according to the Federal Reserve Board’s Survey of Consume Finances, couples in the 55-64 age range have average retirement savings of $537,000 and those ages 45-54 $313,000. For most, building significantly higher savings in the years before retirement is not realistic.

Robert M., a client of mine told me that this reality about Medicare and out-of-pocket health care costs is what motivated him to find a business. He believed that ageism would catch up with him and he would get downsized before he was ready to retire.

His plan was to start his business now while he still had a good income. The business would be his safety net. If he was downsized, he would have another income stream and he would then devote more time to scaling his business.

If he was fortunate and never laid off, he would have extra income and an asset to keep or sell. He decide whether to work full time in his business or build a team, step back from day-to-day operations, and take a more executive role.

Is it easy? No. Is it doable? Yes.

A key to his success is the work BEFORE the business ever opens. I am helping him to find affordable options that fit his goals. I am guiding him through a comprehensive but efficient due diligence process – no phony cheerleading - so he can make knowledge-based decisions that are right for him and his family.