New Research From EBRI: New Estimates Update Retiree Health Sav...(savings for a 90 percent chance of havin...),Health

Woman: A woman would need current savings of $159,000 to have a 50 percent chance of having enough money for retiree health expenses, or $266,000 to have a 90 percent chance of having enough savings to cover retiree health costs. Again, the numbers are higher for women because of greater longevity. (The comparable 2008 numbers were $137,000 and $224,000.)

Married couple: A married couple would need savings of $268,000 to have a 50 percent chance of having enough money for retirement health costs, or $414,000 for a 90 percent chance. (The comparable 2008 numbers were $246,000 and $376,000.)

Medicare, with individually purchased supplemental insurance:

The example assumes 65-year-old individuals who do not have employment-based retiree health benefits and instead supplement Medicare with the individually purchased Medigap (Plan F) and Medicare Part D outpatient drug coverage. The estimates note that projections of the savings needed to cover out-of-pocket drug expenses are subject to a number of variables. The estimates presented in the Notes show the differences for individuals and couples with a three levels of prescription drug use: 50th percentile (median drug expenses), 75th percentile, and 90th percentile (high).

Man: A man with median (50th percentile) drug expenditures would need $86,000 in current savings to have a 50 percent chance of having enough money to cover health care expenses in retirement, or $177,000 for a 90 percent chance of having enough to cover retiree health costs. At the 90th percentile level of drug spending, a man would need $378,000 for a 90 percent chance of having enough money to cover retiree health costs. (The comparable 2008 numbers were $79,000, $159,000, and $331,000)
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