Return to the Household Finances Forum | Post a Follow-Up

Retiring and saving for Medicare costs

Posted by jkom51 (My Page) on
Wed, Feb 8, 12 at 12:57

This is for those Boomers who are thinking about an upcoming retirement and want to estimate expenses. I'll copy this in its entirety as few people have WSJournal subscriptions so a link wouldn't be useful. Also it's very short - more a "think about this beforehand" which might help some folks here.

Saving Up for Medicare
WSJournal February 7, 2012

Let's get this straight: Medicare pays for very little long-term care, and you�ll still need significant savings to cover the rest of your medical expenses.

But very few retirees have come to terms with that depressing reality.

A new survey of 800 middle-income Americans found that 66% of Medicare recipients - people already on Medicare - did not know if the program covers long-term care or estimate its long-term care coverage.

Despite the fact that the survey was paid for by Bankers Life and Casualty, which sells supplemental Medicare insurance, this sobering finding is still worth thinking about: Two-thirds of those on Medicare also said they pay the same, or more, for healthcare now than when they were working. They have been unpleasantly surprised by the cost of Medicare Part B premiums, what you pay for doctor and outpatient coverage, with 44% paying more than they had expected. Part B premiums for Medicare enrollees with higher incomes are now means-tested, meaning the premiums are charged on a sliding scale.

A nonprofit group, the Employee Benefit Research Institute, estimates that a man with median drug costs would need $65,000 in savings, and a woman would need $93,000, to have a 50-50 chance of having enough money to cover health-care expenses in retirement. To have a 90% chance, a man would need $124,000, and a woman would need $152,000.

Follow-Up Postings:

RE: Retiring and saving for Medicare costs

Looking at that and knowing what our insurance pays for the cancer treatments, heart/breathing problems etc. That would be low and/or wiped out in a very short time.
One cancer treatment is over 12,000.00,
Also if you are diabetic, figure on paying at least 134.00 for 100 test strips.

RE: Retiring and saving for Medicare costs

It's a bit misleading to lump medical costs and long term care insurance into the same bucket. Both should be included in a retirement plan, but they aren't really the same thing.

Also, while $65k seems like a big chunk, it is only a couple thousand per year over a 20+ year span. That is comparable to what most young, healthy people pay in insurance premiums and routine care.

RE: Retiring and saving for Medicare costs

Everyone should know Medicare does not pay for long-term care, eyeglasses or dental expenses. You really need to investigate long-term care or have enough savings. Most people rack up huge bills in their last year of life.

RE: Retiring and saving for Medicare costs

When my husband had chemo, our insurance paid 80%, just like Medicare. Our portion of the bill was $30,000. Luckily we could pay it. Now that we are on Medicare, we keep the other insurance to pay the 20%, good thing too. My DH has had 2 other cancers with expensive treatments. Thanks to Agent Orange. We would never trust his health to a the Dept. of Veterans Affairs or a Veterans Hospital.

 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Household Finances Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.

Learn more about in-text links on this page here