EBRI Medicare estimates for retirees

[Big_Hitter]

https://www.ebri.org/pdf/briefspdf/EBRI_IB_460_Medicare.8Oct18.pdf

"In 2018, a 65-year-old man needs $75,000 in savings and a 65-year-old woman needs $99,000 for a 50 percent chance of having enough to cover premiums and median prescription drug expenses in retirement. For a 90 percent chance of having enough savings, the man needs $148,000 and the woman needs $161,000.

For a 50 percent chance of having enough to cover health care expenses in retirement, a couple with median prescription drug expenses needs $174,000 in savings. For a 90 percent chance of having enough, the couple needs $296,000 in savings.

At the extreme — a couple with drug expenses at the 90th percentile throughout retirement who want a 90 percent chance of having enough money for health care expenses in retirement by age 65 — targeted savings are $399,000 in 2018."

 

[Dtail]

It has been mentioned before that there are other large (for some) expenses like food/housing which can be larger than medical, but are not expressed in these terms.
There are always scare tactics though applied to medical.

 

[gauss]

It has been mentioned before that there are other large (for some) expenses like food/housing which can be larger than medical, but are not expressed in these terms.
There are always scare tactics though applied to medical.

+1

[-]I think these lump sums average out to a couple of hundred dollars or so per month over the retirement lifespan.[/-]

There is no need to have the lump sum available on the first day of retirement, as long as the retirement income streams are sufficient to cover all costs.

 

[ivinsfan]

+1

I think these lump sums average out to a couple of hundred dollars or so per month over the retirement lifespan.

There is no need to have the lump sum available on the first day of retirement, as long as the retirement income streams are sufficient to cover all costs.

A coup!e hundred a month per person isn't going to cover it part B alone is 134....65 a month won't cover the rest of the bills

 

[gauss]

^ Good catch. Thanks

 

[kaneohe]

Those numbers seem a lot smaller than I recall seeing....or maybe it was for a couple , I'm thinking. Took a wild guess at male life expectancy at 81 which is 16 yrs from 65. That comes out a bit less than 400/mo. With Medicare at 130+ and supplement at 170 for total of 300/mo, that's in the neighborhood allowing for higher amounts in later yrs and Rx expenses including premiums.
Somehow monthly numbers don't sound as scary as lifetime as others have mentioned.

A later search suggested life expectancy to be 84.