The calculator estimates health care costs in retirement by utilizing a database that includes $136 billion in costs from actual health care claims. Individuals can select from 82 medical conditions to estimate how much they may need to spend on out-of-pocket health care costs.
The calculator assumes individuals will be eligible for and select Medicare Parts A, B and D.
After estimating costs with the calculator, users can create a customizable action plan to help save for health care in retirement. For example, if a person selects “get to a healthier weight” as a goal, the tool will offer possible next steps for pursuing that goal.
In a survey accompanying the tool’s release, AARP found that a little more than a third (36%) of older Americans have taken steps to save for out-of-pocket health care expenses.
The calculator requires no registration and collects no personal data on users, according to a statement from AARP. To learn more about the tool visit http://www.aarp.org/healthcostscalc.