<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=118459&amp;fmt=gif">
Show all

Retirees and Post-retirement Medicare Costs

Retirees and Post-retirement Medicare Costs

1 minute read

An Employee Benefit Research Institute study found that retirees will need to save hundreds of thousands of dollars to cover Medicare costs. These costs include prescription drugs, premiums, deductibles, and any other out-of-pocket costs.

The research for the study used a simulation model, meaning that variable factors were used. Then it was determined how much money was needed to cover out-of-pocket costs.


Survey Findings

Here are some of the study’s findings:

  • $318,000 – The average projected amount couples will need to save to have a 90% chance in covering post-retirement medical costs.
  • $197,000 – The amount in savings a woman will need to have to pay for health care costs in retirement.
  • $166,000 - The amount in savings a man will need to save to pay for health care costs in retirement.
  • $383,000 – The amount a couple with high prescription expenses will need to save to have a 90% chance of covering health care expenses after retirement.
  • Individuals enrolled in Medicare Advantage plans generally have lower savings requirements.

It’s important to note that these are projected costs of health care and that the data provided in the simulation was varied. Actual prices for retiree health care would vary depending upon the person and their situation. Download the bulletin for more details.

Click to Download

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

Health Plans and Gag Clause Attestations
March 10, 2023
6 Cost-cutting Tips for Employers
March 10, 2023
Ken Zastrow

Ken Zastrow

Ken Zastrow enjoys establishing a strong rapport with his clients. He believes that education is key in helping them understand their benefit plans. Ken has a strong background in both active and post-employment benefit strategies. As Employee Benefits Consultant at National Insurance Services, Ken is responsible for the overall assessment and management of all an employer’s benefit plans including claim reconciliation, policy changes, renewals, and medical and dental analytics. He is also well versed in compliance, benefit integration, and early retiree benefits. Ken is a licensed health and life insurance agent, working with schools, cities, and counties in the Midwest Region.