When it comes to retirement planning, many Americans focus on healthcare expenses—but financial expert Suze Orman warns that’s only part of the picture. While Fidelity estimates that a 65-year-old retiree will need about $165,000 for medical costs, that number doesn’t include help with daily living activities.
“As we age, it is natural (if not inevitable) that many things we do for ourselves today we may need help with later in life,” Orman explains. Tasks like cooking, cleaning, bathing, and general mobility can become challenging, and Medicare won’t cover these non-medical expenses.
With the average cost of a full-time home health aide at $77,792 per year, failing to plan ahead could be a costly mistake.
To prepare, Orman suggests considering long-term care insurance, ideally in your 50s, when securing affordable rates is more likely. However, timing is key—while purchasing early can lock in lower premiums, it also means paying them for a longer period.
Women, in particular, should be mindful of this risk. “The 52 percent probability of needing major care breaks down to 46 percent for men and 56 percent for women,” Orman says, pointing to women’s longer life expectancy as a major factor.
The bottom line? Retirement planning isn’t just about medical expenses—it’s about ensuring you have the resources to maintain your quality of life as you age. Read more about Suze Orman’s retirement warning here.
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