Can a retirement calculator account for unexpected medical expenses in retirement?

Yes, many retirement calculators can account for unexpected medical expenses in retirement, but the extent of this capability varies. Here are some ways calculators can incorporate these factors:

• Customisable Inputs: Some calculators allow users to input expected healthcare costs, including insurance premiums, out-of-pocket expenses, and long-term care needs. This helps create a more accurate financial picture.
• Inflation Adjustments: Medical costs often rise faster than general inflation. A good retirement calculator will factor in higher-than-average inflation rates for healthcare expenses.
• Contingency Planning: Many calculators provide options for users to include a buffer for unexpected expenses, allowing for more conservative estimates of how much savings will be needed.
• Scenario Analysis: Some advanced calculators allow users to model different scenarios, such as a sudden health crisis, to see how it impacts overall retirement savings.

By incorporating these elements, retirement calculators can help users prepare for the financial implications of unexpected medical expenses, ensuring a more secure retirement.