<p>“Here’s a new article about health-care costs for future retirees.”</p>
<p>Averages … ranges … probability of your cash covering an arbitrary expense level should your lifespan reach the 85th percentile. There are lots of ways to mentally torture yourself … if you so choose. There are elderly who manage to live on Social Security and Medicare alone. EVERYONE here on CC is in better shape than that.</p>
<p>We’re looking at paying more than one-third of our income for health insurance this year. That is not being in good shape.</p>
<p>Agreed^^ We did save for retirement but did not anticipate how hard medical expenses would hit us.</p>
<p>My husband is already retired. In a good year almost his entire SS check goes on medical - between his medicare premium, medicare D, his several thousand dollar share of his prescriptions , the separate health care premiums for myself and our daughter. In a year that we have any higher than usual medical expenses it is difficult. </p>
<p>We thought we were well set financially as we had saved for retirement. Now we worry a bit, and that is mostly because of medical expenses.</p>
<p>swimcats, maybe you should poke around and see if you can find a medicare D plan for next year that will work out better for him money wise. doesn’t hurt to check. if you need any help send me a PM.</p>
<p>We run all the different scenarios with all his meds in the the different med D programs available to us every year before he signs up. He is on a lot of daily meds and a couple of them the Doc does not want to change so he hits the donut hole pretty quickly. </p>
<p>The politicians who designed that program should be shot. Most of them work for the pharmaceutical industry now. If I could make a single law for politicians it would be that they can not work for any industry for which they have been involved in legislation.</p>
<p>Well at least this year he should have 50% help on most his drugs in the gap and next year it will be 75%… by 2020 it will be gone. (supposedly)</p>
<p>I don’t know how old he is but prior to 2006 Medicare covered nothing at all on drugs so back then people were on their own.</p>
<p>Up till a couple of years back the large oil company he worked for for several decades kept their retirees on their medical program. In fact the employees were always told they paid a bit of a higher premium as retirees were lumped into the same pool, but they would benefit as they would be covered as retirees. Then one year they put the retirees in a separate pool which tripled our premiums that year. Then without warning they suddenly dumped all the over 65 retirees. It was not so bad for the medical side, but for the prescriptions it was a financial shocker. His share of his prescriptions was about $2000 before that, with med D they are much, much higher. </p>
<p>The people I felt most sorry for were the older retirees in their 70s and 80s who were completely baffled when trying to negotiate the med D maze. Fortunately there is an over 60s organization in town that every year will work with anyone that needs help on med D decisions.</p>
<p>I hope it is gone by 2020.</p>
<p>I’ve worked for the same health care system for over 30 yrs.
I think it’s gone something like this:
Initially, the company provided health insurance for all employees and dependents with NO contribution required from employees.
Then, employees were covered free but dependents cost to cover.
Then, employees began paying a percentage of coverage cost for themselves as well as dependents.
The cost increases (modestly) each year. It is a not surprising progression.</p>
<p>Employees on board with the company pre-1998ish will get retiree health benefits.
Those hired since will not. I’m not sure WHAT the coverage will be exactly but am grateful that we will have something. Not retiring for another 10 yrs…I hope that it is not axed before then. The company has a good history of implementing changes going forward and not applying them backward.<br>
It’s been a good place to spend a career.</p>
<p>You are lucky. My husbands company did implement their changes backwards. He worked for them for about 30 years. It was a huge shock for already retired people when they suddenly lost much of their medical benefits. The way they treat their retirees is a disgrace.</p>
<p>That is shameful.
Most ‘policies’ are subject to change at any time, including at my workplace. But it is awful that employees can no longer make reasonable career decisions. I choose to continue in my current position based on many factors, one of which is the promise of retiree health benefits. I may pass on another opportunity based on this expectation. I don’t have a contract so it is a risk to do this. Quality employers will uphold their commitment to their longtime employees. So far, this has been the case for me.
Wish it were the same for more people.</p>
<p>The company I am working for now has also started a “cash carrying” pension program. they put 5% of the yearly salary into Government bond for you. When you leave - however it is the reason, you get the money in that account. That is it. No more pension nor medical insurance.</p>
<p>On the other hand, I have known several elderly people who have less than $2000 in their name. They have no problem seeing doctors, have necessary procedures including by-pass and knee replacements, and all kind of prescriptions. I did not know you have to pay your own medical expenses after you are 65.</p>
<p>Recently, I also did several “predictions” using the on-line retirement calculators. The #1 factor how long your saving lasts seem to be the expect annual withdraw. If one could keep that to just above the SS benefit, a little saving goes a long way.</p>
<p>Dad II- I think if you use a 4% withdrawal rate your money is supposed to last a very long time.</p>
<p>Most people cannot live on what social security pays. Hard to keep the retirement withdrawl that low (even if matching the Soc sec payment rate)</p>
<p>dad 2 - they probably are on medicare which pays a big portion of expenses… but many older people (who can afford it) pick up extra insurance to pay the balances left over after medicare. so they may not be paying for their medical expenses but they may be paying for the insurance to cover it for them. either that or they aren’t broadcasting how much is being paid.</p>
<p>My dear naive H just recently learned to his surprise that there are (many) folks who DON’T have medical coverage mostly paid by employer when they retire. He has worked for the federal government for > 40 years and we are very fortunate that we will be covered by his medical insurance for the rest of our lives.</p>
<p>Our medical plan is excellent, but it would add up if we had more Rx to fill–I have a few & H has a few meds we take regularly, but so far they are pretty reasonably priced. There is a maximum of $2500 per person or $7500 for the family for major medical expenses EXCLUDING Rx (which has no cap for copays).</p>
<p>I count our blessings that we have a house to live in & H has a fixed benefit traditional pension that will pay for his life & a lesser amount for my life if he leaves me a widow.</p>
<p>FG, ref #194. So, if you arrive at age of 65 without a penny to your name. All your medical expenses are covered by medicare, right? If that is true, why save? </p>
<p>Tom1944. I read that somewhere. It basically says if you have 1 million $ and you take 4%, you will have majority of your $1 million to last you. That will be $40K/year on top of your SS and Pensions. </p>
<p>I agree that will be pretty good, if you have 1 Million $ cash.</p>
<p>
Don’t know about you, but I am hoping a large chunk of the over 65 part of my life will be spent enjoying something other than medical care. I’m really hoping our savings aren’t wiped out by my husbands medical costs before I reach 65 (we are 11 years apart).</p>
<p>My husbands parents had substantial assets but suffered ill health in their later years. They ended up in a nursing home. My FIL passed away the week before he was going to have to go on welfare as all his money was gone. My husband is convinced that the knowledge that he was going to have to go on welfare was what made him finally let go. (plus they were in their 90s).</p>
<p>My husband was in the active duty Navy for seven years and twenty two years in the reserves. I never imagined how much the medical benefits that he recieved at retirement would mean to our finances. We bought long term care insurance this year. We could self fund but I don’t want to get in to principal. There is not much chance that we would both need nursing care someday so we bought a five year shared plan, one spouse can use all ten or part of ten years, leaving the remainder for the spouse.
My mother in law has alzhiemers and it’s frighteningly expensive.</p>
<p>
Medicare may cover skilled nursing care, but the eligibility is quite specific. Custodial care - long term nursing care - where the patient needs help to bathe, dress, and eat isn’t covered, at least where I’m from, and the latter is a much more common requirement with age.</p>
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<p>I know two seniors quite well. One pays significantly out of pocket for private insurance because he has found medicare to fall far short of his needs. Another continues to work passed age 65 for her insurance, because she needs far more coverage than that which she would get on medicare. </p>
<p>I do not know the quality or extent of medicare coverage but apparently some find it is far from adequate. Probably if you are in good health, its fine; but if you have significant health issues, as these two do, it is not.</p>