A typical 65-year-old couple will need to save nearly $400,000 to pay for out-of-pocket medical care and long-term care in old age, according to new estimates by the Fidelity Benefits Consulting. That is $60,000 more than a typical couple’s entire savings at retirement, including equity in their home.
Fidelity estimated an older couple will need to put away an average of $260,000 (in today’s dollars) for their out-of-pocket medical costs, even if they have Medicare. And they’d need to save an additional $130,000 to insure themselves against the need for long-term supports and services, in nursing homes or at home. It is important to think about the two costs together since we often think about only one or the other.