Fulltimin-it planning – medical expense estimation

How much do I need to go full timing in my RV?

One of the issues that many seriously considering the full timing lifestyle worry about is the costs involved. The day to day living costs are the easiest to calculate as you have a good history of those for extrapolation. Health costs are one of the more difficult costs to estimate. Business Week recently reported a finding that a retired couple at age 65 needs to have $225,000 in savings to pay for “Medicare premium payments, co-payments, and deductibles, as well as out-of-pocket prescription drug expenses.”

If you amortize that over a 20 year life expectancy at 5%, it comes to nearly $1500/month for health expense for a couple. Compare that to a 80+ something retiree with $1122 withheld from social security payments and $2500 for a pension health care plan annually. That’s about $300 per month. Add $400 per month for long term care insurance and then $200 per month for prescriptions and then add in dental and some other costs for a total of about $1000 per month.And that is just for one, not a couple.

A related consideration is what you will do when fulltimin-it in your RV requires a bit more than you can handle. That is why long term care insurance is attractive. It is also why plans need to be considered for parkin-it and being able to enjoy what you can when you can.

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