According to CNBC, although a recent report estimated a couple age 65 today should expect to incur $245,000 in total healthcare expenses in retirement, that number might actually be too low.
Here are four things to know:
1. The estimate was based on each partner being 65 years old, has a plan to retire today and has an average life expectancy of 85 years for a man or 87 for a woman. The estimate also assumes that this couple will incur costs that include coverage of all co-pays, deductibles and even out-of-pocket costs, as well as certain services excluded by original Medicare, which could be defined as having a Supplemental MediGap Plan F policy.
2. According to Medicare, a person retiring today could expect to incur roughly $4,123.08 in annual costs for their health coverage in retirement.
3. For just health coverage premiums alone in retirement, a couple retiring today should expect to incur about $8,246.16. The figure does not include other out-of-pocket costs, such as expenses for dental services, eye exams or glasses or deductibles for prescription drugs.
4. Taking the known price of $8,246.16 and inflating it at the lowest inflation rate used in the report, which is 4 percent through each person's life expectancy, the figure actually becomes $282,317.70. At a 5 percent inflation rate, the expected costs are projected to be $317,580.50.