Broker Check

Factor in the costs of health care

Ask any retiree and they will tell you that more and more of their pension check is being spent on health care, including paying premiums.

If you are retired and under the age of 65, did you know that TRIP (Teachers Retirement Insurance Program, IL) insurance premiums could be as high as $1085.52 for you and a dependent?1


In 2000 the same plan would have been $579.80. Would an extra $250,000 in your 403(b) be helpful? You can potentially have more money at retirement by lowering the fees you are paying in your 403(b).

Fidelity Investments® produces a report annually to determine Retiree Health Care Costs and found that a 65-year-old couple retiring this year (2011) will need approximately $230,000 to pay for medical expenses (including premiums) throughout retirement, not including dental, vision and nursing-home care2.

The cost of healthcare is expected to rise between 10% – 15% annually causing costs to double within five years. Because of these increasing costs, many retirees are using more of their monthly pension checks to pay for health care premiums.

2Fidelity Study, March 25, 2010