Attention: Pre-retirees and Post Retirees: Killer Costs if You Get Sick

Remember when you never gave a care about getting sick, because you didn’t? These days you’re not so sure.

We’ve heard from folks who didn’t bother to check health-care premiums until after they took early retirement and Obama Care came into their lives. They were stunned by the four-figure premiums they were asked to pay. At this writing, no lifeboat rescue from the present administration.

But to update you: Increasingly, more employers are eliminating retiree health coverage, and you can’t get Medicare coverage until you’re 65. Even then, when you finally have it, there are plenty of costs the government program doesn’t cover.

Fidelity Investments projects the average couple will need nearly $200,000 when retirement age begins just to pay for out-of-pocket medical costs for the rest of their lives.

Long-term care costs can be particularly devastating. That’s a nice way of saying when you can’t eat, or put on your pants, someone is going to have to be there to do it for you and charge you a lot of money.

How much money is required, and do you have to win the lotto to pay it? It would seem so, for most people. Seventy-five thousand dollars is the average yearly cost of living in a nursing home, whether you pay out of pocket, whether you have long-term care insurance, or whether you’re on welfare with Medicaid paying for your stay.

A 65-year-old man faces a 27 percent chance of needing long term care, said actuarial expert Christopher Raham, while the same age woman has a 32 percent chance.“Together, a couple has a 50 percent chance of having a long term care event,’” said Raham, a senior actuarial adviser for Ernst& Young in Atlanta. “And the average cost is about $150,000.”

With new projections on baby boomer health, more that 37 million of them—six out of 10-will be managing more than one chronic condition by 2030. Also by 2030, fourteen million boomers will be living with diabetes—that’s one out of every four boomers.

Almost half of the boomers will live with arthritis which peaks to just over 26 million in 2020. More than one out of three boomers will be obese (21 million).

This is just a capsule of what lies ahead when the over-65 population will triple between 1980 and 2030 as a result of the aging population adding new demands and challenges on an already stressed-out medical health system.

If you plan to retire before you qualify for Medicare, make sure you Investigate your private health insurance options and have enough income to pay the premiums. If you don’t, you might want to delay retirement a few more years until you do. Underestimated and unexpected health-care expenses could consume a large portion of retirement savings. In closing, health care is your biggest risk in retirement besides taxes. Get ready to live healthy.

353 minutes/2 min/8 seconds reading time

This blog utilized information from the new retirement book: Rollover:


Author: David Wilkinson

Web master: web site is marketing concepts for small businesses targeted around web site design and follow on customer building concepts like email marketing, use of social media, media coverage and search engine optimization. In addition, Wilkinson is a bookwriter. Along with his brother,Don, David has written and published two business books: "Stop Wasting Your Wealth in Mutual Funds." and "Rollover— Make Your Retirement Savings Last Longer Than You Do" Second book schedule to be published in February 2017.

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