Health care

The 2022 Fidelity Retiree Health Care Cost Estimate discovered that the average 65-year-old couple who retires this year should expect to spend around $315,000 on health care costs.

In fact, the biggest hope is that Medicare will be able to pay for most of it. However, it might prove to be even trickier since Medicare also comes with out-of-pocket costs that might eventually add up. Healthy seniors might have lower expenses and discover that their retirement savings could last even longer.

Long-term care

The Fidelity estimate doesn’t include long-term care, especially since a private nursing home room might cost more than $100,000 a year. Medicare is definitely not here for you in the long run.

If you and your spouse don’t have long-term care insurance, you might be shocked to find out that a nursing home stay might drain most of your funds.

Retirement income

As you well know, most people won’t be able to live solely off their retirement savings. Those who want to stick to the average spending, meaning $52,000 a year, might only be fine with their Social Security and pension income. Even more, those without pensions could still replicate those payments by simply getting an annuity.

Asset mix

Believe it or not, how you keep $1 million matters greatly. Don’t worry; we don’t mean that the Feds will knock at your door. But imagine that you can’t really survive throughout your retirement with this amount of cash.

The best thing to do would be to keep them invested in specific sectors that would keep up with inflation. Also, having $1 million invested is completely different than having $800,000 in home equity and $200,000 in the portfolio.

Usually, the money you keep in real estate isn’t liquid, and other costs are associated with the property, which could eventually offset its value.