FAQ: Retirement Healthcare Costs

Frequently Asked Questions

Need assistance with data entry? RightCapital is here to help! Please use the common questions and answers below to assist you in generating financial plans. For additional assistance use the link to our support team at the bottom of the article.


Where did your healthcare cost data come from and how often is the information updated?

Answer: By default, the system will pre-populate a goal for client and co-client's Retirement Health Care Cost based on national average figures. These figures are based on Fidelity Investments 2021 retirement health case study, which is updated annually. You will also have an option for a detailed estimate which will base Medicare premiums for parts A and B off the client’s AGI or a fully customized input.  


Does RightCapital calculate IRMAA?

Answer: RightCapital will calculate IRMAA penalties on Medicare premiums as long as the retirement medical expense goal is set to “detailed estimate”. The detailed estimate will adjust Medicare premiums based on the client’s AGI, while the national average amount is static.


Do I include retirement Health Cost in retirement monthly expenses?

Answer: No, the Retirement Healthcare Cost will be a separate entry. It is important not to include this cost in the retirement monthly expenses section to avoid double counting expenses. 


Where can I adjust the inflation on Retirement Healthcare Costs?

Answer: The Retirement Health Care Cost data card will inflate based on the health care cost inflations found within the Advisor Portal > Assumptions > Inflation assumptions tab. The default is to increase health care costs by 5% annually. 

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