Retirees Left To Shoulder More Of Health-Care Costs
Essay Preview: Retirees Left To Shoulder More Of Health-Care Costs
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ARTICLE ABSTRACT/SUMMARY
With rising health care costs, workers need to plan for higher risks associated with financing their care in retirement. More employers are cutting out health-care benefits for future retirees. Meaning added cost for the retirees. The numbers go higher if you beat your life expectancy or use higher-than-average services. Financial planners say they are seeing retired clients spending $850 to $1,000 a month on Medicare premiums, co-pays and out-of-pocket expenses.
ARTICLE DICUSSION
Employee Benefits research Institute and Fidelity Investments have researched retiree health costs. EBRI pegs the lifetime costs at $295,000 for a couple age 65 today, while Fidelity in at $215,000. The EBRI figure assumes premium payments for insurance coverage beyond Medicare and out-of-pocket expenses. The Fidelity numbers assumes no other coverage and includes co-pays, excluded benefits and prescription costs, among other items. Financial planners are urging all but their wealthiest clients to wait to retire until at least 65, when they qualify for Medicare coverage to help ease the pain in excess cost during retirement. Individuals should learn which Medicare and insurance choices best fits their needs. Take better care of their health. And factor retiree benefits into every job search.
Traditional reliance on one’s retirement benefits to cover all their expense in retirement has now become a dream. With rising costs in health care it is become more difficult for retiree’s to rely on their pensions and other benefits to cover their all monthly expenses. With retiree’s spending up to $1,000 a month extra just on Medicare premiums, co-pays and out of pocket expense for their healthcare. Soon retirees will have to decide what’s more important to them paying for healthcare cost or paying for