In this episode short, Joe and Big Al show you how much of your income is projected to be spent on healthcare. Rising healthcare costs are one of the biggest pieces of the retirement puzzle, causing many people to have retirement shortfalls.
Transcription: “In 2000, 16% of someone’s total income was going to healthcare. If you look at 2030, it’s going to be 35%. That’s the point, is that the cost of healthcare is going to increase so you want to make sure you’re aware of that. It’s going to take some 35% of your overall income! And in the next slide we’ll show the percentage of your income. So, lower income individuals are going to have most of their income going to healthcare. The difference between 2000 and 2030, look at that, in the bottom quartile of wage earners or retirees’ income, 20% of your expenses were healthcare in 2000 and in 2030 it’s projected to be 50%. So this is what we’re seeing in each of the categories; there are more and more spending required for healthcare.”
**Source: Center for Retirement Research
