$150,000: Your health care costs in retirement

What’s a smart way to prepare yourself? If you do not already know how much you spend each year, you should start keeping track. Try to make paying off any credit card debts a priority. If you can, delay taking Social Security until you’re 70 to maximize your benefits.

A married couple is expected to spend about $300,000 in retirement. Health care costs for men are slightly lower than costs for women. Men are expected to spend about $143,000 and women closer to $157,000. Fidelity does not explain why. But, it’s likely because women tend to live longer and are also more likely to seek out health care services.

People’s health care costs have risen 30 percent since 2011. They are up 1.7 percent in the last year. And, that’s more than people’s increase in Social Security benefits this year.

Fidelity’s projections are based on people enrolling in traditional Medicare and also having Medicare Part D prescription drug coverage.

Fidelity breaks down spending into three buckets. It estimates that about 42 percent of spending is for deductibles and coinsurance for Medicare Parts A and B. Another 39 percent goes to Medicare Part B and D premiums.  And, 19 percent covers the cost of prescription drugs.

It’s not clear how Fidelity factors in the cost of services that Medicare does not cover. Most people pay for some dental care, vision care and hearing care. And most people also need long-term care services and supports.

Long-term care alone is extremely expensive if you do not have family and friends providing it free of charge. It can cost anywhere from $1,603 a month for day services to more than $10,000 a month for a private room in an inpatient facility.

Here’s more from Just Care:

• Beware of steep premium increases on long-term care policies
• If you’re making a Medicare choice, don’t trust the insurance agent
• More people benefiting from Medicare coverage of advance care planning
• Housing options for older adults
• Free local resources to help older adults