Estimating Your Health Care Expenses In Retirement

When you are trying to cover – especialy when it comes to retirement expenses for healthcare – it is not an easy task, especially now when healthcare is in a confusing state and being reworked.

Nonetheless, the Employee Benefit Research Institute is trying to help figure the numbers out as they have for many years. Here are some of the facts they are offering:

If you look at the best case scenario of a 65 year old man who will supplement Medicare retiree benefits from a former empoyer and his health insurance premiums are subsidized by his former employer, he’ll need $68,000 om current savings to have a 50% chance to have enough money to cover health care in retirement.

A 65 year old woman who will supplement Medicare with retiree benefits but the former employer doesn’t subsidize premium costs will need current savings of $159,000 to have a 50% chance of having enough money to cover health care coverage in rretirement.

You’ll notice that the woman will need more than the man for two reason. One is that in her case her employer is not subsidizing her premium costs. In addition, studies have shown that women’s health costs are more than men’s. These two factors make her situation more expensive and her savings higher and more critical.

For a 65 year old married couple who don’t have employment-based retiree health benefits and who will have to suppement their Medicare by purchasing Medigap and Medicare Part D outpatient drug coverage. They will need current savings to have a 50% chance of having enough money to pay for retirement healthcare costs.

This is just the best case scenario under current conditions. Things could be worse. There are numerous variables that can affect the situation and who knows what will happen if and when Medicare and healhcare reform kick in.

The main idea is that you should start saving for retirement and for medical expenses for retirement. Whatever you are able to put away now will start growing and help you in the long term. Put away as much as possible every time you get paid whether it’s $5.00 or $50.00. Anything is better than nothing.

Some quotes by Diane Stafford