Older clients underestimate the cost of health care in retirement

[mickeyd]

Reading this account about retirement health care expenses really makes me appreciate my military retiree benefits that my fellow citizens allow me to have at low cost.

Older workers are making the mistake of underestimating their health care costs in retirement, according to a study by Nationwide in this article from Motley Fool. Data from the study shows pre-retirees estimated their yearly health care expenses in retirement to reach $7,000, however the actual cost stands at $10,739. To prepare for this retirement expense, clients should consider putting money away in a health savings account, which offers triple tax benefits-pre-tax contributions, tax-free growth and tax-exempt withdrawals for qualified medical expenses.

https://www.financial-planning.com/news/older-workers-underestimate-the-cost-of-health-care-in-retirement?position=editorial_2&campaignname=FP_Daily_Daybreak_MobileControl_SplitA-09262019&utm_source=newsletter&utm_medium=email&utm_campaign=FP_Daily_Daybreak_MobileControl_SplitA%2B%27-%27%2B09262019&bt_ee=YXk6pnpPtG1z1N%2Bhew0ngKnrW9UOKECNsYKsuy0SedsWcRNhHwgA%2BkyOrcopAsKh&bt_ts=1569491634080

 

[USGrant1962]

I looked at the source - this article is just wrong. $10,739 is the total national spending per person on health care, not cost to an individual.

https://www.cms.gov/Research-Statis...onalHealthExpendData/Downloads/highlights.pdf

 

[marko]

Having spent $20K+ in HC each year for both of us waiting to get old enough for Medicare, $10K sounds like a bargain!

Frankly, we spend less than $2K OOP as of now.

 

[travelover]

I looked at the source - this article is just wrong. $10,739 is the total national spending per person on health care, not cost to an individual.

https://www.cms.gov/Research-Statis...onalHealthExpendData/Downloads/highlights.pdf

If your employer reduces your salary by $10,739 then gives you free health care insurance is it really free?

 

[USGrant1962]

If your employer reduces your salary by $10,739 then gives you free health care insurance is it really free?

Nope, but the article is about retirement not employer health care.

 

[CardsFan]

I looked at the source - this article is just wrong. $10,739 is the total national spending per person on health care, not cost to an individual.

https://www.cms.gov/Research-Statis...onalHealthExpendData/Downloads/highlights.pdf

Yep. The article is either intentionally dishonest, or the writer has no clue how to read the data they are "reporting" on.

 

[travelover]

Nope, but the article is about retirement not employer health care.

True. I was responding to your statement which did not differentiate.

I looked at the source - this article is just wrong. $10,739 is the total national spending per person on health care, not cost to an individual.