Retired couples need $250,000 for health care costs

[Commonground]

[This is out of CNN.com]
http://money.cnn.com/2010/03/25/pf/retirement_health_costs_/

By Chavon Sutton, staff reporter
March 25, 2010: 7:41 PM ET

NEW YORK (CNNMoney.com) -- If you're retiring this year, you will need $250,000 in savings to cover your family's medical expenses during your retirement, Fidelity Investments announced on Thursday.



That's up just more than 4% over last year and a 56% spike compared to 2002, when Fidelity first issued its Retiree Health Care Costs Estimate.



Each year Fidelity forecasts what a U.S. couple retiring at age 65 would need to cover their health care expenses during retirement, presuming they qualify for Medicare and do not have an employer-sponsored plan.



[more @ link]

 

[sharon sanders]

Re: Retired couples need $250,000 for health care costs

Thanks Commonground. I do not see that the authors reference the new healthcare bill. I am not sure how the bill affects medical costs for the over 65 group.

 

[Commonground]

Re: Retired couples need $250,000 for health care costs

no, this article does not deal with the ramifications of the healthcare bill.

excerpt from article:

The Fidelity study found that only 3 out of 10 retirees saved specifically to cover health care costs while they were working. And 47% said that monthly out-of-pocket costs and insurance premiums were higher than they had anticipated.


Fidelity reported that average health care costs were $535 a month, or one-fifth of a couple's total monthly expenses of $2,842.


Though Losey says the figure may unnecessarily scare people, he added that a little fear might not be such a bad thing if it improves awareness and planning, especially in the face of health care reform.



"This statistic is going to scare people," says Losey, "but maybe in a good way that forces people to get off their behinds and eat better, exercise more, and hopefully keep their health insurance costs in check."