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Projected Savings Medicare Beneficiaries Need for Health Expenses Increases

Projected Savings Medicare Beneficiaries Need for Health Expenses Increases

The Employee Benefit Research Institute published a report that estimates some couples could need as much as $469,000 in savings to cover their health care costs in retirement.

This represents an extreme case involving couples with high prescription drug expenditures, says EBRI, a Washington, DC-based public policy research organization.

By the numbers: To have a 90 percent chance of meeting their health care spending needs in retirement, a man will need to have saved $212,000, and a woman will need to have saved $252,000.

  • These numbers are based on a new simulation model developed by EBRI to measure future healthcare costs.
  • EBRI says the percentage of private-sector establishments offering retiree health benefits has been falling.

As access to retiree health benefits becomes increasingly rare, the responsibility for health care expenses in retirement will fall more on the shoulders of today’s workers.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.