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Financial advisors: How much will healthcare cost your clients in retirement?

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Healthcare planning services needed as costs continue to rise

According to Fidelity Investment, a 65-year-old couple retiring this year will need an estimated $260,000 to cover healthcare costs in retirement.

That’s a 6 percent increase, and the highest estimate since the firm began calculating these costs in 2002. The company attributed the rise to increased utilization and rising drug prices.

To insure against the need for long-term care, Fidelity estimates a couple in good health would need an additional $130,000.

Where do all these costs come from? The spending associated with Medicare Part B premiums, Medicare Part D, Medigap policies and out-of-pocket expenses—including prescriptions—really adds up.

Healthcare planning needed

Most consumers see the above figures as daunting, and understandably so. The rapid rise in healthcare costs illustrates the need for effective healthcare planning, especially in retirement.

But where do consumers go for advice? Medicare is notoriously hard to digest, and reputable advisors are hard to find.

Some financial advisors and wealth managers are recognizing this as an opportunity. National wealth managment firm Raymond James announced its plan to debut new healthcare planning tools for its more than 7,000 advisors.

But financial advisors at smaller firms don’t necessarily have the scale to compete with a national, corporate roll-out of healthcare planning services, even if they see the value of stepping up to fill gaps in healthcare advice.

Bernard Health has been advising individuals, families and employers on healthcare planning for ten years. By partnering with Bernard Health, financial advisors can roll healthcare advisory into their practice without hiring a dedicated staff member. The Healthcare Extension gives financial advisors and wealth managers access to a team of licensed, noncommissioned healthcare advisors who answer client questions, lead seminars and compete analyses delivering personalized healthcare recommendations each fall.

To learn more about the services included in Bernard Health’s Healthcare Extension, click below.

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