Bohemia, NY (PRWEB) November 16, 2013
Chris Hobart, the CEO of Hobart Financial Group, a leading RIA provider, comments on an article published by CNBC on November 4th, which details the risk of unexpected medical expenses during retirement.
According to the CNBC article titled “Overlooked health-care costs can destroy retirement planning,” the largest risk to retirement plans is unexpected medical expenses. Many retirees overlook or underestimate healthcare costs when planning for retirement.
The Employee Benefit Research Institute (EBRI) says that a 65-year-old couple with “median prescription-drug expenses” would need approximately $300,000 to cover 75 percent of their remaining lifetime medical bills if they retire this year. However, most people ages 55-65 believe they only need about $50,000 for medical care during retirement because Medicare would cover most of it.
Unfortunately, that’s simply not true. The article says Medicare only covers about 60 percent of healthcare costs. Chris Hobart, CEO of Hobart Financial Group, a leading RIA provider, says retirees should begin saving for emergency healthcare services they may need during retirement.
“Medicare coverage is being limited for many seniors across the board, as well as future retirees,” he says. “When it comes to retirement planning, healthcare costs are going to be the biggest burden. It’s important that people begin saving as soon as possible. It’s obvious that there is a big disconnect in terms of what people think and the reality. Most couples should be saving over $360,000 to cover most of their healthcare needs during retirement.”
Hobart Financial Group is an independent North Carolina financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.