Q: How much should I budget for medical costs in retirement?

A: We recommend budgeting $5,000 – $7,000 per person per year beginning at age 65. The average 65-year-old couple will spend an average of $260,000 on healthcare over the course of their retirement. If you were to include the couple’s total healthcare (dental, vision, deductibles and co-pays, prescription drug coverage, and all out-of-pocket expenses), their costs would rise to an average of $394,954 over the duration of their retirement. For a 55-year-old couple retiring in 10 years, total lifetime healthcare costs would rise to $463,849. Read: Healthcare Costs – Budgeting For Them In Retirement.