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For instance, EBRI finds that men retiring in this year (2010) at age 65 will need anywhere from
Women retiring this year at 65 will need even more: between
These estimates are for
The new EBRI analysis details how much savings an individual or couple will need to cover
However, EBRI finds that retirees will continue to need a substantial amount of savings to cover their health care expenses in retirement, and that uncertainty related to health care use, prescription drug use, and longevity will still play a major role in planning for retiree health care. Results are shown by the desired level of probability (50, 75, and 90 percent) of having enough savings to cover health costs in retirement.
The full report is titled “Funding Savings Needed for Health Expenses for Persons Eligible for
“Because employers are continuing to scale back retiree health benefits, and policymakers may soon begin to address
EBRI notes that in 2007 (the most recent data available),
Among the key findings of the EBRI analysis:
- Single men: Men retiring at age 65 in 2010 will need anywhere from
$65,000 to $109,000in savings to cover health insurance premiums and out-of-pocket expenses, if they want an average (50–50) chance of being able to have enough money. If they want a 90 percent chance of having enough to cover these expenses, they’ll need between $124,000 to $211,000.
- Single women: Women retiring at age 65 in 2010 will need anywhere from
$88,000 to $146,000in savings to cover health insurance premiums and out-of-pocket expenses for a 50 percent chance of having enough money, and $143,000 to $242,000if they prefer a 90 percent chance.
- The near-elderly: Persons currently at age 55 will need even greater savings when they turn 65 in 2020. The needed savings for men retiring in 2020 range from
$111,000 to $354,000, while needed savings for women range from $147,000 to $406,000(in 2020 dollars), depending on their source of health insurance coverage to supplement Medicare, any employer subsidies, prescription drug use, and their savings goal related to their comfort level with having a 50 percent, 75 percent, or 90 percent chance of having enough savings to cover health insurance premiums and out-of-pocket health care expenses in retirement.
EBRI is a private, nonprofit research institute based in
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