A. It's true that even financial advisors usually just guess the ‘reasonable’ medical expense amount in retirement, and perhaps add a separate inflation rate to it, without much further detail. However, things are changing, the following are three tools that could help advisors to help estimate what the health care costs in retirement might realistically be.
Aivante
It will collect information about a person's health history, and the geographic location (given regional differences in cost of living and cost of care), then make a personalized projection of healthcare costs in retirement, and how consumption of those healthcare services may change over time.
Genivity
It looks into lifestyle and hereditary factors to similarly estimate healthcare expenses in retirement (and can be embedded into an advisor’s website as an interactive experience for clients).
Whealthcare
It goes even one step further, helping advisors work with clients to plan for the “logistics” of aging (e.g., where clients will live as they get older, how they’ll transport themselves when they can no longer drive, etc.), and has tools to assist in the development of a “financial caretaking” plan and a “proactive aging” plan.