When doing your estate planning, you need to spend time focusing on the changes to your medical needs as you grow older. This is the reason people often include advance directives and medical powers of attorney. They know that they may not be able to make all of their own medical decisions, and they want to make sure that there is someone else in place to do it for them.
But, seeing as how estate planning also revolves around money, you should consider the financial side. Generally, medical costs tend to go up as you get older. One study looked at those who were 65 years old — right around when most people retire — and discovered that the average costs they faced for health care alone came in at about $11,300 for each person. That’s an annual cost, recurring every year.
Now, it’s true that someone who had a stroke and needs around-the-clock assistance could have massive medical bills. The same is true for cancer patients and many others. Those facing hundreds of thousands of dollars are going to pull the average up significantly. But this still shows you just how high those costs can reach and what you need to plan for on average.
The spike is often something of a surprise. After all, the average cost at 65 is about three times what the average is for those in their 20s and 30s. Even those who know that the costs are going to go up do not always anticipate that they will rise quite that far.
As you do your planning, make sure you know what steps to take.
