Listen to Fidelity’s advice and you might not save enough
When I first saw the headline on Kaiser’s Daily Health Policy Report (Financial Experts Question Fidelity Estimate of Savings for Retirees’ Health Expenses) I thought the article would say that Fidelity had overestimated the amount in order to try to get people to save more and pump up Fidelity’s fees for assets under management. But actually it turns out that the experts think people need to save at least twice as much to pay for their health care in retirement as what Fidelity estimates.
Fidelity says $200,000 is enough, but the Employee Benefit Research Institute says that’s only enough to get you to age 80. If you live to 90 you need $400K and if you hit 100 you’ll need $800K. And remember, that’s with Medicare coverage.
Your results may differ.March 14, 2006