A recent study conducted by the Employee Benefit Research Institute (EBRI) found that retirees will need to have hundreds of thousands of dollars in savings to cover post-retirement medical costs. Such costs include premiums, deductibles, and prescription drug expenses—essentially any costs that are out-of-pocket for Medicare beneficiaries.
Research for the study was conducted using a simulation model. This means that variable factors, such as mortality and rates of return on assets, were considered. Then, the amount of money beneficiaries need to put away to cover out-of-pocket costs was determined. Here are the findings from the study:
It’s important to remember there is variation within the data and these are projected costs of health care. This means that prices for health care for retirees will vary.
At RMC, we work with business owners to develop the most effective retirement program to meet their needs and goals for retirement. Our approach to retirement planning is comprehensive and process driven. We guide our clients to a better retirement strategy beginning with an analysis of the client’s needs and goals. During this process, we examine each factor impacting retirement and then design, implement, and administer the right retirement plan to achieve your financial goals and retirement needs.
For further information on ways to save for retirement, contact RMC Group today to speak with a Retirement Professional at 239-298-8210 or [email protected].
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This article is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2023 Zywave, Inc. All rights reserved.