Health-care expenses and taxes are throwing off baby boomers’ spending patterns.
These are just two of the living costs that are consuming more of retirees’ budgets than they had originally planned, according to a new survey from Capital Group, an investment management firm. The company teamed with APCO Insight to poll 1,200 adults online in March 2017.
Among the retired boomers who participated, 43 percent said that they were spending more than expected on health-care expenses. That’s not surprising, considering that a healthy 65-year-old couple that retire this year can anticipate spending $275,000 on medical expenses – not counting long-term care, dental work or over-the-counter medications – once they’ve stopped working, according to Fidelity.
“There has never been a generation as healthy, active and well-off as this one,” said Heather Lord, senior vice president and head of strategy and innovation at Capital Group.