Guessing games can be fun. There’s a reason Wheel of Fortune and Jeopardy have lasted as long as they have. But playing the guessing game in retirement may not be as much fun, especially when we’re wrong.
Here’s an important question:
How much do you think a 65-year old couple will spend on out-of-pocket health care costs over a 20 year period?[1]
Did you make your guess? The answer is on average you’ll spend between $255,000 - $360,000 over that 20 year period, and more if you live longer!
If you got it wrong, you were in good company. 4 out of 5 people couldn't accurately predict how much they’d need.
This isn't a blog about health care, but it is about making sure you have enough income in retirement. If you were wrong about a quarter million dollar expense, is there a chance you could be wrong about some of the other risks and expenses you’ll face?
Good planning starts with knowing the facts and understanding the risks…because nobody should play the guessing game with their retirement income.
[1] Data from Nationwide Retirement Institute, “A Closer Look at Health Care Costs in Retirement”