None of that is scary in isolation. It\u2019s just ordinary cost-sharing that adds up over 20-plus years. Knowing that is the difference between dread and a plan.<\/p>\n
Quick aside \u2014 most internet financial advice comes from people who weren\u2019t alive during the last recession. I\u2019ve been writing about money for more than 35 years. Want rock-solid advice? Sign up for the free Money Talks Newsletter<\/a>. Takes 10 seconds. No fluff. No spam.<\/p>\n 3. It leaves out the one cost that can actually hurt you<\/p>\n Here\u2019s the part almost nobody reads: Fidelity says right in its report that the $172,500 does not include long-term care. (1)<\/p>\n That\u2019s a big deal, because long-term care is the expense that can actually do damage. Fidelity\u2019s own research says someone who reaches 65 has roughly a 70% chance of needing some form of long-term care. (4) And Medicare doesn\u2019t cover custodial care<\/a> \u2014 the daily help with bathing, dressing, and eating \u2014 which is exactly the kind most people end up needing.<\/p>\n So the routine Medicare costs? Manageable, as we\u2019ve covered. The long-term care bill? That\u2019s the one worth planning for on purpose. At 70, I\u2019m past the ideal age to buy coverage myself, but if you\u2019re younger, this is the thing to look at while it\u2019s still affordable.<\/p>\n According to government data, about 7 in 10 people turning 65 will need some form of long-term care. And Medicare doesn\u2019t cover custodial care \u2014 the day-to-day help with things like bathing and dressing \u2014 which can leave families facing six-figure bills that eat into retirement savings.<\/p>\n Long-term care insurance helps fill that gap<\/a>, covering services like home care, assisted living, and help with daily tasks. Rates are typically lowest if you buy in your 50s or early 60s, couples often qualify for discounts, and premiums may even be tax-deductible.<\/p>\n A little planning now can spare your family a difficult financial situation later.<\/p>\n See a list of the best LTC insurance companies \u2014 takes 2 minutes.<\/a><\/p>\n Two more things the headline hides.<\/p>\n First, $172,500 is per individual. (1) A couple should roughly double it in their planning \u2014 Fidelity pegs a 65-year-old couple around $345,000. (4) That sounds worse, but it\u2019s the same manageable annual math, just times two.<\/p>\n Second, the estimate assumes you have no dedicated savings set aside for this and no strategy for how you\u2019ll pay. That\u2019s a choice, not a fate. The people who get blindsided are the ones who never made a plan \u2014 and the fix for that isn\u2019t panic, it\u2019s a conversation.<\/p>\n If you\u2019ve got real retirement savings in play, the smartest move is to have someone run the actual numbers for your situation \u2014 your Medicare choices, your tax picture, how to draw down accounts in the right order.<\/p>\n These types of questions are the perfect time to get a second set of eyes\u2026an expert to help guide your investments and savings, as well as offering advice on tricky questions like when to take Social Security and how to plan for healthcare.<\/p>\n Where do you find a qualified advisor? Easy.\u00a0SmartAsset<\/a> instantly matches you with up to three fiduciary advisors \u2013 legally required to prioritize your interests. It doesn\u2019t cost a dime to see what\u2019s out there, and most advisors offer free first appointments.<\/p>\n $100K+ in investments? Get matched free in minutes.<\/a><\/p>\n Here\u2019s the statistic that should actually get your attention. Fidelity found that 1 in 5 Americans have never once thought about health care costs in retirement \u2014 and 17% across all generations have taken no action at all. (1)<\/p>\n That\u2019s the real story. The $172,500 isn\u2019t the threat. Ignoring it is.<\/p>\n And the simplest first move costs you nothing: set aside money specifically for these costs, and don\u2019t let it sit in a checking account earning nothing while inflation eats it.<\/p>\n Switching to a better bank account is one of the easiest edges out there.<\/p>\n If you\u2019re still at a traditional brick-and-mortar bank, you may be paying monthly checking fees while earning almost nothing on your savings.<\/p>\n SoFi<\/a> offers a combined checking-and-savings account with no account fees, and with eligible direct deposit you can earn up to 3.80% APY on savings \u2014 many times the national average. (APY is variable and can change at any time.)<\/p>\n New members who set up qualifying direct deposit may also be eligible for a cash bonus of up to $400, based on the amount deposited. Terms apply \u2014 see details.<\/p>\n Check out SoFi today.<\/a><\/p>\n <\/p>\n Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12\/23\/25) for up to 6 months. Open a new SoFi Checking and Savings account andpay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1\/31\/26. Rates variable, subject to change. Rates variable, subject to change.<\/p>\n Terms apply at\u00a0sofi.com\/banking#2<\/a>.\u00a0SoFi\u00a0Bank, N.A. Member FDIC.<\/p>\n The bottom line from someone who\u2019s actually there<\/p>\n I\u2019ve been on Medicare for years now. The bills come, I pay them, and my retirement is just fine. So I can tell you from the inside: $172,500 is a real number, but it\u2019s a slow, spread-out, manageable number \u2014 not a cliff you fall off the day you turn 65.<\/p>\n The companies that publish these figures aren\u2019t lying. But a giant lifetime total, printed in bold, is designed to make you anxious enough to act. Anxiety\u2019s a lousy financial planner. Arithmetic\u2019s a good one.<\/p>\n So do the arithmetic. Budget a few hundred a month for routine costs, make a real plan for long-term care while you\u2019re young enough for it to be cheap, and set your savings aside on purpose. Do that, and this number loses its teeth.<\/p>\n Sources: Fidelity Investments<\/a> (1); TheStreet<\/a> (2); PLANSPONSOR<\/a> (3); Fidelity Viewpoints<\/a> (4).<\/p>\n","protected":false},"excerpt":{"rendered":"Money Talks News may earn commission or revenue through links in the content below. 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\n4. It\u2019s one person\u2019s number \u2014 and it assumes you did nothing to prepare<\/p>\n
\n5. The real problem isn\u2019t the cost \u2014 it\u2019s that people don\u2019t plan for it<\/p>\n