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-   -   Healthcare % of $$ (http://www.early-retirement.org/forums/f38/healthcare-of-74786.html)

Hyper 12-05-2014 05:01 PM

Healthcare % of $$
 
Sorry, couldn't think of an acceptable title!

What % of take home $, retirement $ is your current healthcare cost? Ours is currently 20% of take home, WITHOUT being used. OOP would make it higher. Other HC threads with some paying unbelievable premiums I personally don't know what I will do if I have to pay some day. Others are paying 50% premiums as to what we currently take home! We do have our daughter on ours so 3 adults but it is very rarely used if at all.

photoguy 12-05-2014 05:59 PM

Of our retirement budget, healthcare premiums are about 12% (ACA unsubsidized) however we've allocated much more than that to cover out-of-pocket expenses, inflation, and other costs. The big problem is how to "amortize" large lumpy costs that are most likely to occur well into the future.

Overall, I'd say we've reserved 1/4 of our net worth for healthcare.

Walt34 12-05-2014 06:06 PM

Ours is just a bit over 15% for our share (30%) of the overall premium. We feel very fortunate to have that.

Bestwifeever 12-05-2014 06:36 PM

Quote:

Originally Posted by Hyper (Post 1525991)
Sorry, couldn't think of an acceptable title!

What % of take home $, retirement $ is your current healthcare cost? Ours is currently 20% of take home, WITHOUT being used. OOP would make it higher. Other HC threads with some paying unbelievable premiums I personally don't know what I will do if I have to pay some day. Others are paying 50% premiums as to what we currently take home! We do have our daughter on ours so 3 adults but it is very rarely used if at all.

If your takehome pay is a paycheck with the premium already deducted, do you add the premium back into the takehome amount before figuring out the percentage? I think I would figure the percentage out on the gross pay before taxes or any other deduction--it might make you feel better!

M Paquette 12-05-2014 07:41 PM

Premiums cost about 17% of adjusted gross income (AGI) from the bottom of the first page of our 1040 joint return. With use, the total healthcare cost runs around 20-25% of AGI the past 6 years.

Sue J 12-05-2014 07:58 PM

Without the ACA subsidy it would be 33% of DHs after tax pension. After the subsidy it is a far more reasonable 4%. We chose a low cost/high deductible plan so we will be paying for just about everything all year and expect those costs to come to about 6% of after tax income.

We save as much as possible, about 12% of the pension and 100% of my part time pay, knowing that a good portion of that will end up being health care costs in the deductible.

rodi 12-05-2014 07:58 PM

The percent of net isn't super easy for me to figure out - since I'm still figuring out what my retired taxes are (vs my former worker income taxes.)

Unsubsidized ACA premiums for 2015 is 16% of our planned gross spend for 2015. It's by far our largest monthly bill.

OOP/Deductibles only kick that up. We have a slush fund set aside for funding our HSAs this year, and for any OOP for this year.

When I was working - my portion of the contribution for health care was 4% of my GROSS pay. Again - my net pay is harder to figure out since I maxed my 401k, had ESPP payroll deductions, etc... (My take home was very small compared to my gross because of the deferred savings.)

Alan 12-05-2014 08:05 PM

For our retirement budget I had HC spend including OOP costs and dental at 15% but we've been lucky so far. This year was our most costly since ER, at 7% of our budget.

Mulligan 12-05-2014 08:27 PM

Through December of this year my healthcare percentage of NET income from my pension is 1.8%. Thanks to Obamacare starting in January it will be 6.3%. This is as good as it will get as I consume no healthcare dollars outside of premiums presently.


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W2R 12-05-2014 08:31 PM

All healthcare costs (including medical insurance, Medicare Part B, dental work, prescription costs, and so on) added up to 21% of my spending last year. That was partly due to my dental implant and other unusual medical/dental expenses last year. So far this year my healthcare costs have been 13% of spending.

jfn111 12-05-2014 09:11 PM

My healthcare cost run about 9% of my pension check.

Hyper 12-05-2014 09:17 PM

Ok so if I go off gross it puts it at slightly under 17%. Nope, don't feel any better!


What are premiums for supplemental, with having Medicare?

imoldernu 12-05-2014 09:26 PM

Don't know how to percent an expense to no income, so...

$10,000/yr. for DW and me. Includes about $1000 beyond medicare,supplement and deductible.

SteveNU 12-05-2014 09:35 PM

I'm 57 and DW is 54 and we have a subsidized retiree health care plan. The premiums and out of pocket are running about 15% of gross right now. Looking out a few years I can see it creeping up towards 20% until medicare kicks in or one of us kicks the bucket!

pb4uski 12-05-2014 09:47 PM

Our health insurance premiums are 6.7% of our annual living expenses (including mortgage payments, 8.7% excluding mortgage payments). While our deductibles and co-pays so far this year are negligible, the budgeted amount is about 4.3% of our annual living expenses (and about 1/4 of our combined total deductible).

Jackanory 12-05-2014 10:13 PM

As a % of AGI it's 5%, but that's only because I'm maximizing my subsidies by controlling income. A more interesting question might be: as a percent of net worth ... for which I'd have to move into the realm of fractions, very small fractions! :)

Live And Learn 12-06-2014 12:04 PM

DH is still working - primarily for the subsidized HC. But in ER my HC budget is 25% of total spend. I've assumed I'm going to hit the OOP max each year, which I probably will.


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