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BUSINESS Saturday 8 June 2019
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Liz Weston: Let's get real about health costs in retirement

By LIZ WESTON Higher-income people
NerdWallet pay larger premiums for
Associated Press certain parts of Medicare.
You won't pay for health Some premiums also vary
care in retirement with one by location, as do medical
lump sum. That's the way costs in general. How much
these expenses are often health care you'll consume
presented, though, and is greatly influenced by
the amounts are terrifying. how healthy you are when
Fidelity Investments, for ex- entering retirement, and, to
ample, says a couple retir- some extent, your genes.
ing in 2019 at age 65 will "The actuaries know that
need $285,000 for health the health status of your
expenses, not including parents tends to pass gen-
nursing home or other long- erationally," Young says.
term care. The Employee A TYPICAL RANGE: $4,900
Benefits Research Institute TO $6,000
says some couples could Here's the number the re-
need up to $400,000 — searchers came up with:
again, not including long- $5,200. That's the median
term care. The Center for amount a typical 65-year-
Retirement Research at old woman could expect
Boston College hasn't up- to spend annually for pre-
dated its figures recently, miums and out-of-pocket
but back in 2010 estimat- medical, dental and vision
ed a typical couple could This April 2017, file photo provided by NerdWallet shows Liz Weston, a columnist for personal fi- costs in 2018. (Median is the
spend $260,000 for medical nance website NerdWallet.com. point where half pay more
and long-term care, with Associated Press and half pay less. The study
a 5% risk that costs will ex- used women because they
ceed $570,000. The approach of present- figures to cover food, or on what retired people have slightly higher long-
No wonder 45% of people ing people with a huge, transportation, or shelter actually spend on health term costs, but the gender
in their 50s and early 60s perhaps unattainable, in a typical retirement. But care. What they found was difference is about 2%.)
have little or no confidence figure has long bothered these are costs you pay that medical costs tend to That assumes the woman
that they'll be able to af- Jean Young, senior re- over time — just like you'll be in certain ranges, based lives in a medium-cost
ford their health care costs search associate with the pay for health care. on a handful of factors: area, is at medium risk for
once they retire, according Vanguard Center for Inves- Young and other Van- — Where you live health care costs (she ei-
to a survey by the University tor Research. guard researchers part- — Your health ther smokes or has a chron-
of Michigan. "The thing is, it's not helpful, nered with actuaries at — Your parents' health ic medical condition or
MEDICAL COSTS MAY BE it's not actionable, it's not Mercer Health and Benefits — Whether you buy supple- two) and buys supplemen-
MORE PREDICTABLE THAN relatable," Young says. consulting firm to create a mental coverage tal Plan F, the most popular
YOU THINK You also may need six proprietary model based — Your income Medigap policy. q
Asian stocks trail US rise on US-Mexico trade deal optimism

By YURI KAGEYAMA 17.34 points, or 0.6%, to administration is preparing
Associated Press 2,843.49. The Dow Jones to extend them to $300 bil-
TOKYO (AP) — Asian shares Industrial Average rose lion more — almost all items
were mostly higher Friday 181.09 points, or 0.7%, to shipped to the U.S. from
on investor optimism about 25,720.66. It briefly climbed China. China has recipro-
a possible trade deal be- 260 points. cated with tariffs of its own,
tween the U.S. and Mexico The Nasdaq composite re- among other measures.
before tariffs take effect. versed an early slide, add- The trade dispute with Mex-
Japan's Nikkei 225 gained ing 40.08 points, or 0.5%, to ico and China threatens to
0.5% to 20,884.71, while 7,615.55. The Russell 2000 stifle economic growth in
Australia's S&P/ASX 200 index of smaller compa- the U.S. and globally. Un-
rose nearly 1.0% to 6,443.90. nies dropped 3.25 points, or certainty surrounding the
South Korea's Kospi fell 0.2% 0.2%, to 1,503.54. trade negotiations has sent
to 2,066.03. Chinese mar- President Donald Trump many traders fleeing to saf-
kets were closed for a holi- said he'll make a decision er investments, like bonds Visitors take photos of a statue of a bull along a shopping street
day. about ramping up tariffs and gold. in Beijing, Friday, June 7, 2019. Asian shares were mostly higher
Friday on investor optimism about a possible trade deal be-
A modest Wall Street rally on China after he speaks Investors are also watching tween the U.S. and Mexico before tariffs take effect.
gained strength in the final with Chinese President Xi the U.S. jobs data due later Associated Press
hour of trading after Bloom- Jinping this month during in the day for signs of where
berg reported that the U.S. the G-20 meeting in Japan, the economy is going. upon Friday's U.S. labor international standard, rose
was considering delaying a which brings together lead- "Asia markets look set to market update," said Jingyi 79 cents to $62.46 a barrel.
5% tariff on Mexican goods, ers of developed and de- trail after the U.S. with mod- Pan, market strategist at IG CURRENCIES:
set to go into effect on veloping countries. erate gains as worries on in Singapore. The dollar rose to 108.44
Monday. The report came Trump ordered tariffs of up trade tuned a notch lower ENERGY: Japanese yen from 108.22
as the two countries held a to 25% on hundreds of bil- through the Thursday ses- Benchmark U.S. crude yen on Thursday. The euro
second day of trade talks. lions of dollars' worth of sion. The attention, mean- gained 66 cents to $53.25 a strengthened to $1.1266
The S&P 500 index gained Chinese exports and his while, is mostly focused barrel. Brent crude oil, the from $1.1231.q