Couples with high prescription drug expenditures may need to save $383,000 to have a 90 percent chance of having enough money to cover their healthcare costs in retirement, according to the Employee Benefit Research Institute.
To project how much Medicare beneficiaries may need to save to have a reasonable chance of meeting their healthcare spending requirements in retirement, the EBRI built a simulation model allowing for uncertainty due to mortality and rates of return on assets in retirement.
The analysis found:
- Men must save $166,000, and women $197,000, to have a 90 percent chance of meeting their healthcare spending needs in retirement;
- Couples enrolled in a Medigap plan with average premiums, meanwhile, will need to have saved $212,000 to have a 50 percent chance of covering their medical expenditures in retirement and $318,000 to have a 90 percent chance; and
- Couples enrolled in a Medicare Advantage plan must save $123,000 to have a 50 percent chance and $184,000 to have a 90 percent chance of covering their healthcare expenditures in retirement.