Planning for health care costs in retirement

June 18, 2018


Annual health care costs are growing faster than inflation, raising concerns for pre-retirees and retirees about how health care costs will affect their retirement and how they will pay for these expenses.

To help investors map out their health care expenses in retirement, Vanguard engaged Mercer to develop a new model to forecast health care costs for U.S. retirees.

Use this piece to:

  • Analyze the personal factors that influence annual health care costs as well as the factors that could require some individuals to plan for higher replacement ratios.
  • Examine several proposed important changes to the way that health care costs are typically discussed and modeled.
  • See how framing annual health care costs as an incremental change is a more practical approach than focusing on daunting lump-sum estimates.
Additional materials


  • All investments are subject to risk, including possible loss of principal.

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