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The brief’s key findings are: Health care costs loom as a major risk for retirees, with nursing home care as the real wild card. A typical couple at age 65 can expect to spend over its remaining lifetime: $197,000 with a 5-percent risk of exceeding $311,000, excluding nursing home care; or $260,000 with a 5-percent…
Abstract Estimates of the expected present value of lifetime out-of-pocket medical costs from age 65 onward are of limited value to households managing wealth decumulation in retirement. Their risk characteristics may differ from the average. They will also care about the whole probability distribution of health cost outcomes, and will want to update that probability…
