Will Retirement Be Spent in Financial Sick Bed ? . .

July 2004
Journal of Financial Planning;Jul2004, Vol. 17 Issue 7, p21
Academic Journal
This article focuses on the alleged possibility that increasing medical costs in the U.S. may shrink retirees' savings, as of July 2004. The Employee Benefits Research Institute said that medical costs for retirees is actually five times what those approaching retirement think they will be, and that the institute estimates that a retiree will spend out of pocket for healthcare anywhere from $80,000 to $700,000. Also, couples retiring at age 65, with no access to employer-sponsored health insurance, will spend $175,000 for medical care, not including long-term care, according to Fidelity Investments. Meanwhile, the impact of such costs will be exacerbated by the fact that only 18 percent of employers with 200 or more workers offer retiree health plans, versus 66 percent in 1988, according to the Kaiser Family Foundation. On the other hand, Kaiser also said that another 20 percent of employers plan to drop their health plans for retirees.


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