Many people think they understand how health care expenses will impact them but often grossly underestimate their future health care costs. Many also believe they will be able to rely on coverage from Medicare and their employers during their golden years. However, this may not be the case, as the number of businesses offering retiree health benefits is steadily declining and the financial pressure on Medicare seems to be increasing.
Recent statistics show that almost half of American workers report total savings and investments (not including their primary residences or any defined benefit plans) of less than $25,000, even though it's estimated that retirees will need approximately $225,000 to pay for health care alone. Consumers need to learn to more accurately estimate their medical expenses in retirement and to understand how to pay for them to protect their assets.
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1. This means that the medical and insurance costs could be an average of over 9 times as much as the total savings, and that doesn't even include the cost of living! I wonder if people are planning to rely on social security, because that amount may or may not ven be there for them as we lead into the future...
Jerry
Jerry ( ) at 1:54PM on May 9th 2008