Oct 30, 2006
Have you got $200,000 saved up?
Consumer Reports just published a chart on health care expenses for those retiring at age 65. The source was the Employee Benefit Research Institute, which explained how much savings a retired person would need JUST for health care costs.
That $200,000 would last only 15 years, assuming you used it to pay the cost of the premium, plus Medicare Part B and other out-of-pocket expenses like tests or doctors’ visits. If you lived 20 years past retirement, you would need $300,000. If you lived 25 years, you would need $400,000 in savings.
These figures are NOT for living expenses. They only are for part of health care costs.
Employers certainly know the majority can’t afford anywhere close to that amount. They may tell us to drop dead after we retire, but we don’t intend to!