dslreports logo
 
    All Forums Hot Topics Gallery
spc
Search similar:


uniqs
97

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Planning for retirement? Healthcare $ could be overlooked

»news.morningstar.com/art ··· d=589929

A recent survey found more than half of retirees and those still saving for retirement greatly underestimate the out-of-pocket tab.

Estimating how much one needs to have saved up in order to retire can be difficult. But among the most important--and most overlooked--aspects of retirement planning is health-care costs, which can have a dramatic impact on a retiree's financial picture.

Past research has also shown that people don't understand the Medicare program and think it will cover more than the 60% of health-care costs than it does. Many of our respondents underestimated the costs of premiums for Medicare Parts B and D and for supplemental coverage. It also seems most people don't fully grasp how much health-care costs, including the portion they will have to pay out-of-pocket, are increasing.

women respondents projected 50% lower lifetime expenditures ($30,000 median estimate of lifetime retiree spending) than their male counterparts ($60,000 median estimates) despite experts' estimates that the typical woman will spend 50% more over her retirement on health-care costs than the typical man.

Perhaps even more importantly, we think that retirees need to be careful when selecting supplemental health coverage--a policy that fills in the Medicare gaps, which 90% of retirees have--that it protects them against catastrophic spending, even if they need to spend a bit more upfront.

Saving for retirement? Then better plan on higher Healtcare costs than you think you will need. Medicare, Obamacare, etc isn't going to cover all your costs.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Medical costs are the single biggest cause of bankruptcy and wealth destruction of the formerly middle-class.