New estimates update retiree health savings needs
The Employee Benefit Research Institute (EBRI) released new estimates regarding the amount of money individuals and couples will need to cover certain health care expenses in retirement.
The new estimates provide current information to allow individuals and couples plan for the financial consequences of longevity and investment risk, as well as the various types of medical care coverage available when they reach age 65.
Employment-based benefits, with premiums subsidized by a former employer
|
MAN |
WOMAN |
MARRIED COUPLE |
|
Need in current savings to have 50% chance of having enough to cover
health care expenses in retirement |
$68,000 |
$98,000 |
$165,000 |
Need in current savings to have 90% chance of having enough to cover
health care expenses in retirement |
$134,000 |
$164,000 |
$256,000 |
Employment-based benefits, with premiums not subsidized by a former employer
|
MAN |
WOMAN |
MARRIED COUPLE |
|
Need in current savings to have 50% chance of having enough to cover
health care expenses in retirement |
$111,000 |
$159,000 |
$268,000 |
Need in current savings to have 90% chance of having enough to cover
health care expenses in retirement |
$217,000 |
$266,000 |
$414,000 |
As high as the estimates are, EBRI notes that many individuals will need even more money than the amounts projected because the analysis does not factor in the savings needed to cover long-term care expenses, nor does it account for the fact than many individuals retire early (before they become eligible for Medicare). It’s also important to note that the estimates don’t include savings needed to cover any basic costs of living, such as food, clothing or shelter.
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LAST UPDATED 6/23/2009