Women will face numerous financial challenges during retirement, and will need to save more than men to cover healthcare costs later in life, according to a report released Wednesday by HealthView Services.
According to the report, the average expected healthcare costs for a healthy 65-year-old, retired woman covered by Medicare parts B, D and Medicare supplement, are projected to be $235,526 if she lives to 89. However, a man of the same age who lives to 87 will need $199,946 dollars.
Adding the cost of dental, vision and hearing-related services increases a woman's healthcare outlays to $306,426 compared to $260,422 for men, according to the report.
The difference in average expected healthcare costs for men and women can be explained by longevity, as women, on average, live about two years longer than men, reports The Wall Street Journal.
"Because women live longer, they will have more years to pay premiums and other out of pocket costs," Ron Mastrogiovanni, founder and CEO of HealthView Services, said, according to WSJ.
However, these projections, which are based on the expectation that healthcare costs will increase by an average of approximately 6 percent annually for the foreseeable future, understate the cost of medical care for people with high incomes and healthy people, WSJ notes. According to the publication, people with an annual income that exceeds $85,000 (for singles) or $170,000 (for couples), can expect to pay surcharges on premiums for Medicare Parts B and D, while healthier people generally pay higher lifetime medical bills, as they are expected to live longer.
None of the projections include the potential costs of long-term care.