2010 Retirees with Medicare Must Save At Least $124,000 to Cover Most Health Expenses
The total cost of health insurance and related out-of-pocket expenses will require all 2010 retirees to save at least $124,000 to cover 90 percent, according a new report released by the Employee Benefit Research Institute (EBRI). The report also found that while costs will likely decrease some as a result of the health care law, the decrease will be nowhere near enough to make up for the amount retired workers–especially women–will have to pay to cover their health care expenses.
Retirees Must Increase Savings to Pay Health Insurance Costs
While the EBRI report revealed that all retirees will need to have a substantial stash put away to make sure that they can cover their health insurance out-of-pocket expenses, it seems women will need to save more than men in the long run.
According to the report, men and women will need to save the following:
- Men: Those men retiring in 2010 at the age of 65 will need anywhere from $65,000-$109,000 in savings to cover their health insurance premiums and out-of-pocket expenses in retirement if they want a 50/50 chance of having enough money. They will need $124,000-$211,000 to have a 90 percent chance.
- Women: Women who retire at the same age will need $88,000-$146,000 for a 50 percent chance and $143,000-$242,000 for 90 percent.
What’s even more shocking about these numbers is that they are meant for Medicare beneficiaries who are already receiving government insurance. Those who retire before 65 won’t qualify for Medicare and will therefore need even more for insurance and out-of-pocket expenses.
What Options Do Retirees Have?
The problem many retirees face is they barely have enough savings to cover everyday expenses like mortgages and car payments, so trying to come up with over $100,000 specifically for health insurance for many is out of the question.
Luckily, there are some solutions for retires like Eldercare that could be of benefit. To learn more about what options are out there, visit our low-income health insurance resource. It may point you in the right direction if you’re in need of care and don’t have the money to pay for it.