The Real Price Tag of Retirement

World-renowned gerontologist Dr. Aubrey de Grey has said, “The first person to live 150 years has already been born.” Sound like science fiction? Star Trek’s Admiral Leonard McCoy was inspecting the new U.S.S. Enterprise D at age 137. OK … that IS science fiction. But, The Guinness Book of World Records documented French citizen Jeanne Calment lived 122 years 164 days—that is a fact. Many have asked what did she eat? What did she drink? What was her lifestyle? But my curiosity asks, what were her medical and elder care bills? Four other American women lived at least to age 116. One of them, Sarah Knause, died December 30, 1999, at age 119 years, 97 days—two days short of being a tri-centurion. Ida Mae Fuller was the first recipient of the Social Security program and she lived to age 100 after paying a total $24.75 into the system, she received $22,888.92. Are these women just anomalies, the outliers of the Bell Curve or are they new trendsetters? Again, this all sounds utterly fantastic, but what did they pay for their medical and elder care costs?

Fidelity Investments estimates a couple retiring at age 65 will spend $220,000 on medical expenses during their retirement¹. One federal government study found the average length of time since admission for all current nursing home residents was 835 days.² Depending upon what state you retire in, that price tag could reach $77,380 annually for a semi-private room to $87,600 for a private room. An assisted living facility is around $42,000.³ Even so; assisted living could cost up to $100,000. But these costs may be conservative in light of the greatest mortality revolution in modern times. Watch the interview with nationally recognized Certified Financial Planner and Registered Investment Advisor Stephen Stricklin talk about longevity and the big-ticket items of retirement. http://rightonthemoneyshow.com/most-americans-dont-have-a-pension-plan-anymore-stephen-stricklin-2/

^{1 The 2014 Retiree Health Care Cost Estimate2 by Fidelity Investments®.} 

^{2 The National Nursing Home Survey: 2004 Overview. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Health Statistics.}

^{3 Genworth 2014 Cost of Care Survey.}