A lifetime's toll of out-of-pocket costs for healthcare services is 29 percent higher this year than in 2005, and 11 percent higher than 2014 alone, according to Time.
Fidelity Investments estimates a 65-year-old couple today will have paid $245,000 in co-pays, deductibles and other out-of-pocket healthcare spending over their lifetime, not including the cost of long-term care or most dental and vision healthcare, according to the report.
A main reason for the rapid increase is revised mortality tables, which for the first time show the average newborn will reach age 90. The average 65-year-old woman will reach 88.8 years and the average 65-year-old man will reach 86.4 years. The added years to life expectancy in the U.S. will not be free; Fidelity also projects healthcare costs are rising between 4 and 5 percent each year, according to the report.
Other studies have come up with even higher estimated figures. For instance, HealthView Services projects a healthy 65-year-old couple will have paid a total of $266,589 in out-of-pocket spending over a lifetime, and a 55-year-old couple retiring in 10 years will reach a staggering $463,949, according to the report.
One contributing factor is how only about one-third of large employers currently offer retiree health benefits, down from two-thirds 25 years ago, Allianz Life Insurance said.
High healthcare costs combined with fewer retiree benefits is a significant concern for many. Just one in nine people approaching the age of retirement are confident they will be able to pay for their retirement healthcare needs, a Merrill Lynch survey found. When asked to name their top retirement concern, 72 percent of respondents named health issues, while 47 percent said not having enough money to live comfortably.