Retirees still require a large savings to cover out-of-pocket health expenses in retirement, despite the reduced retirement health costs the new health reform law brings, according to a nonpartisan Employee Benefit Research Institute report.
Women especially need more savings because they typically live longer than men. EBRI, for example, finds men retiring in 2010 at age 65 need $65,000-$109,000 in savings to cover retirement health insurance premiums and out-of-pocket expenses for a 50 percent chance of having enough money. For a 90 percent chance, $124,000-$211,000 is needed. However, women retiring in 2010 at 65 need $88,000-$146,000 in savings for a 50 percent chance of having enough money while $143,000-$242,000 is needed for a 90 percent chance.
EBRI estimates these figures for Medicare beneficiaries age 65 and older, and for those retiring before age 65, more savings is needed.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
