The cost of Healthcare and Elder Care in Retirement

January 24, 2018

When preparing for retirement, imagining the new lifestyle that awaits you can be exciting. From travel to family time to relaxation, a fulfilling retirement looks different to each individual. Preparing for the quality of life you desire goes beyond simply ensuring you can support your daily costs and fulfill your dreams. You should address two other looming financial responsibilities: health care and elder care.

Read more to learn about how retirement planning is changing and what you need to know to stay prepared for your golden years.

We Are Living Longer

Thanks to medical advances, campaigns to create more awareness of healthy living, and other factors, retirees are living longer than ever before. In 1970, 10.3% of the total population (20.9 million people) lived to be 65 years old or older. By 2000, that number jumped to 12.4% (34.9 million people).[i] The trend continues. On average, a man turning 65 years old today can expect to live to 84.3 years old; meanwhile, on average, women turning 65 years old today can expect to live until 86.6.[ii]

Many people will have an even longer lifespan: About one of every four 65-year-olds today will live to be more than 90, and one of 10 can expect to live past 95 years old.[iii] If you’re in good health, you need to prepare for your longer lifespan and the associated medical costs that come with older age.

Healthcare and Long-Term Care Costs Are Rising

Not only are we living longer but our healthcare costs are also increasing. Today’s average 65-year-old couple can expect to pay $260,000 (before inflation) on healthcare costs during retirement. This cost doesn’t include your long-term care financial needs.[iv]

Here are some other essential facts:

  • Retirees spend nearly a third on average of their Social Security benefits on out-of-pocket medical expenses.[v]
  • The average cost for non-medical home care is $20 per hour.[vi]
  • A health aide charges $20.50 an hour.[vii]
  • It costs $6,844 per month for a semi-private room and $7,698 per month for a private room in a nursing home.[viii]
  • Today’s average annual cost for assisted living care is $43,539.[ix]

Generally, a retiree’s Medicare and employer-sponsored insurance do not cover long-term care costs. Because of this, understanding the financial gap you have in your planning is critical.

Retirement Savings Shortfalls Are Hurting Us

While many people are making strides in preparing for retirement, we may not be saving enough money. The median 45-year-old male’s projected savings shortfall for retirement at 65 is $212,256; meanwhile, the median 45-year-old female’s projected savings shortfall is $268,404.[x]

In addition, many individuals are not putting enough money away into health savings accounts (HSAs). The average HSA account balance for people 65 years and older is $5,016.[xi] People are not fully preparing themselves for retirement. You should take an honest look if you have a retirement savings shortfall so you can create a strategy now to fill that gap.

Overall, these costs are just a snapshot of key retirement healthcare expenses to plan for. Factors such as your unique lifestyle, current health, and financial profile will guide how you need to prepare financially for health-related costs throughout your retirement. We’re ready to help you live comfortably in your golden years, so instead of worrying you can focus on enjoying life to its fullest. To start the conversation, please feel free to contact us at any time.


“Being free and prosperous in a world at peace. That’s our ultimate goal.”– Ronald Reagan

Cherry Tomato Casserole with White Beans and Basil

Serves 6


2 cups cubed (1-inch pieces) hearty whole wheat bread (5 ounces)
2 tablespoons extra virgin olive oil
2 pounds cherry tomatoes, halved
2 cans (15 ounce each) no salt added cannellini beans, rinsed and drained
¼ cup packed fresh basil, chopped
3 cloves garlic, chopped
½ teaspoon crushed red pepper
Kosher salt and black pepper
¼ cup grated Parmesan cheese


  1. Preheat oven to 350°F.
  2. Toss the bread with oil on a large rimmed baking sheet.
  3. Bake 8-10 minutes, stirring midway through, until golden brown.
  4. At the same time, put tomatoes, beans, basil, garlic, red pepper, 1 teaspoon salt, and ¼ teaspoon of black pepper in a large bowl.
  5. Toss with bread.
  6. Put mix in a shallow 6-cup baking dish. Lightly add cheese on top.
  7. Bake for about 40 minutes until golden brown.
  8. Let cool for about 10 minutes.

Recipe adapted from Good Housekeeping[i]


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If you are registered with My Account, you can also use Auto-fill my return when you file online using certified software.

On your mobile device? Try the MyCRA mobile app - you can securely access key parts of your tax information and manage personal details, wherever you are.

Register for online access HERE

How Can Older Golfers Improve their Game?

Your joints may get stiffer, your eyesight dimmer, and your energy level lower, but your zeal for golf will never diminish—not while you’re on this side of terra firma.

Here are some tips to keep you a few shots ahead of Father Time:

  • Go for the short shots: While the years may rob you of some of that strength and agility, preventing you from sending your tee shots soaring into the big blue, concentrate instead on developing your short game.
  • Stretch those tired muscles: While we don’t need to remind you that some of the old joints may not be as willing to take to the greens as during earlier times, you should recognize the importance of a good and thorough warm-up before play. Remember, an ounce of prevention can offset weeks of sore shoulders and backs.
  • Reconsider your equipment: You may not be Dustin Johnson anymore, but you’ll certainly settle for Jack Nicklaus. Older golfers should consider reexamining their equipment. Restricted mobility and less cooperative muscle groups shouldn’t stand in the way of energizing your game and restoring that old passion. New clubs may be all you need to put the fire back in those bones.

You may not have the Masters Tournament in mind when you’re hitting the links, but there’s no reason why you can’t have an enjoyable and exhilarating time on the course at any age—with a few minor age-related adjustments.Tip adapted from PGA.[i]

Tackling a Sore Throat

Winter may bring wonderland to the world outside, but the bluster and tumult of ole Jack Frost certainly bring along some unwelcome guests. The sore throat is one of the most common health complaints during the colder months of the year.

A sore throat can take three forms:

  • The common sore throat precedes a cold. Other symptoms include a runny nose and congestion.
  • Strep throat causes a sore throat. Streptococcus bacteria cause strep throat.
  • A sore throat can be caused by tonsillitis. Tonsillitis is a painful inflammation or infection of the tonsils.

How do you treat sore throats?Viruses do cause sore throats, so antibiotics won’t help. Rest is the only treatment for a sore throat that’s not strep throat. Antibiotics do help treat strep throat. Seek a doctor’s treatment if you think you have strep throat.

Tip adapted from WebMD.[i]


Discover Easy Tips for Going Green

Going green isn’t about making a fashion statement. It’s about developing a lifestyle that helps preserve the planet’s delicate ecosystems by taking individual responsibility for how we live and interact with our immediate environments.

Here are 5 tips to help you lead the green life:

  • Eat less meat. Reducing your meat intake can have a profound impact on the planet. Nearly a third of the Earth’s surface is used to raise and support livestock.
  • Less paper, more recycling. Recycling one short ton of paper can save 17 mature trees.
  • Forget paper or plastic and go canvas. Canvas shopping bags may cost more, but produce far less waste than plastic or paper bags. Canvas bags are also sturdier and can be used to store items.
  • Buy the right light bulbs. You don’t need to buy replacement bulbs if your old ones are still shining. When your bulbs do go out, replace them with eco-friendly brands.
  • Use cloth instead of paper. Use old t-shirts or other older clothing to do spring cleaning or spill cleanup. Using paper towels is just a waste of paper.

Going green is easy. Just a few simple steps and you’re on your way to a greener, cleaner life.Tip adapted from Wheels for Wishes.[i]