Good read on DB/DC plans and poverty

[jim584672]

Just to add... seniors in my state can get further drug price reductions by enrolling in EPIC which is a state run program.

 

[MichaelB]

The EBRI article was from 2012, but not far off from the Fidelity health costs estimates for a retiring couple in 2014 at $220K:

Fidelity Analysis Reveals

That can't be a coincidence. I looked for but never found any Fidelity reference to methodology. The EBRI methodology is pretty straightforward, it is the sum of premiums for Medicare B+D + Medigap F, and then estimates for drug OOP at different levels of use.

That should make it pretty easy to break down and test how useful it is as a planning number.

 

[daylatedollarshort]

That can't be a coincidence. I looked for but never found any Fidelity reference to methodology. The EBRI methodology is pretty straightforward, it is the sum of premiums for Medicare B+D + Medigap F, and then estimates for drug OOP at different levels of use.

That should make it pretty easy to break down and test how useful it is as a planning number.

The Fidelity number comes includes their estimates for:

"As part of the estimate, Fidelity looked at monthly expenses associated with Medicare Part B and D premiums, co-payments, co-insurance and deductibles, such as for doctors' office visits and outpatient services. The estimate takes into account out-of-pocket costs for things such as vision and hearing exams, eyeglasses and hearing aids."

http://abcnews.go.com/Business/retiring-couple-220000-health-care-fidelity-study/story?id=19185055
https://www.fidelity.com/bin-public/060_www_fidelity_com/images/2014-RHCCE-bar-chart.jpg

 

[hnzw_rui]

The food stamp rule is that you should spend 30% of your income (after some deductions) on food. You get food stamps (SNAP) if the 30% of adjusted income is less than $180/mo per person. I'd guess that most people with $13k annual incomes do not get food stamps.

OTOH, most communities have subsidized senior housing. I think a typical rule is that they cap rent at 30% of gross income. So $13k will probably get you an apartment for $330/month.

Sounds about right. I know my grandmother paid around $300 for her apartment. Her utilities are also discounted/subsidized. Mind, food is fairly inexpensive in the US (at least relative to income) as long as you don't eat out at restaurants all the time. There's also going to be Medicaid for LTC. I reckon as long as housing and health care costs are under control, $1,000/mo would actually be livable as long as you economize. There's not going to be room for any luxuries but at least I don't think you'll have to live under a bridge rooting through garbage or something.