Got $378,000 for health costs in retirement? You may need it

[marmar]

Jun 17, 2009, 5:09 p.m. EST

Retirees may well worry about health-care reform
Retirement health-care costs are steep -- are you prepared?

By Robert Powell, MarketWatch


BOSTON (MarketWatch) -- If things weren't bleak before, they certainly are now. Men and women retiring today will need truckloads of money to pay for health-care expenses over the course of their retirement, according to a new study.

And that was the case long before we learned that President Barack Obama plans to cut $313 billion in Medicare and Medicaid spending and reform this nation's health-care system. It's anybody's guess what retirees might need if those reform plans become a reality.

For the time being, at least, the reality is this: Men retiring at age 65 in 2009 will need from $68,000 to $173,000 in savings to cover health-insurance premiums and out-of-pocket expenses in retirement if they want a 50/50 chance of being able to have enough money, and $134,000 to $378,000 if they prefer a 90% chance, according to a study published last week by the Employee Benefits Research Institute.

Meanwhile, women -- with their greater longevity -- will need even more money. A women retiring at age 65 in 2009 will need from $98,000 to $242,000 in savings to cover insurance premiums and out-of-pocket expenses in retirement for a 50/50 chance of having enough money, and $164,000 to $450,000 for a 90% chance, said Paul Fronstin, an EBRI researcher, in the report. Read the report on the EBRI site.

But it gets worse. Many Americans may need even more money than the amounts cited above, Fronstin said, because his "analysis does not factor in the savings needed to cover long-term care expenses, nor does it take into account the fact that many individuals retire prior to becoming eligible for Medicare." ..........(more)

The complete piece is at: http://www.marketwatch.com/story/retirees-may-well-worry-about-health-reform