X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
pills in bottle made of dollars A primary premise of the paper, which Young said is the first Vanguard has co-authored with an outside partner, is that retirement planning professionals should think in terms of annual spending and budgeting needs for retiree health care, just as they do for areas of retiree spending. (Photo: Getty)

A recently published working paper by five economists—three of whom are staffed at Federal Reserve banks—is the latest in a growing line of academic work projecting out-of-pocket health care costs in retirement.

Using data from the Health and Retirement Survey and Medicare Current Beneficiary Survey, the research shows that once households reach age 70, they will spend an average of $122,000 in out-of-pocket medical costs over their lifetime; 5 percent of households will need more than $300,000 to cover out-of-pocket costs; and 1 percent will incur more than $600,000 in costs.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com 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?

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

More from this author

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.