AARP Introduces Free Health Care Costs Calculator for Retirement Planning

News provided by

Nov 26, 2013, 11:34 ET

Only One Third of Americans Close to Retirement Age Have Taken Steps to Save for Major Expense

Sample Tweet: Great new #retirement planning tool for health costs from @aarp unveiled - http://bit.ly/1aRafga

CHICAGO, Nov. 26, 2013 /PRNewswire-USNewswire/ -- Today, AARP launched a free online Health Care Costs Calculator, a major addition to their Ready for Retirement suite of planning tools. In a survey accompanying the release of the calculator, AARP found that just one third (36 percent) of older Americans have taken any steps to save for out-of-pocket health care expenses, though multiple studies show that such costs often reach significantly more than $200,000 for a retired couple. The new tool is available to all at www.aarp.org/healthcostscalc.

"The free Health Care Costs Calculator can play an important and often overlooked role as families and individuals plan for retirement," said AARP Vice President for Financial Security Jean Setzfand. "Health care costs can have a significant impact on retirement savings. With this calculator, AARP aims to help more Americans confidently plan for and achieve retirement goals."

The Health Care Costs Calculator estimates health costs in retirement by utilizing a database that includes $136 billion in costs from actual health care claims. Individuals can select from 82 medical conditions to estimate how much they may need to spend on out-of-pocket health care costs. The calculator also assumes that individuals will be eligible for and select Medicare Parts A, B and D.

After estimating costs with the calculator, users can create a customizable action plan to help save for health care in retirement and make impactful changes in their lives that include planning, saving, and making healthy changes. For example, if a person has "get to a healthier weight" as a goal, the tool will offer possible next steps for pursuing that goal.

The Health Care Costs Calculator requires no registration and collects no personal data on any user. To learn more about the tool visit http://www.aarp.org/healthcostscalc.

SOURCE AARP Illinois