Health-Care Burden To Top $400,000 For Retirees
July 2017
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Once again, it should be noted that these costs do NOT project any spending for custodial long-term care services (home care, assisted living). The underlying report details some very meaningful assumptions and rigorous analysis. BUT it's not as scary as the lump sum headline may seem when put into a proper cash-flow perspective. The $404,253 is projected to age 87 for men and 89 for women. Using an average life expectancy of 88, that means these are costs that will be paid over 23 years. $404,253 divided by 23 = $17,576/year for TWO people. Of this $13,608/year are for premiums which can be budgeted month-to-month from cash flow. $13,608 is $1,134/month, again this is for TWO people = $567/month per person. That's reasonable in today's market., and may even be less than is being spent on health premiums monthly before retirement. The balance of the out-of-pocket costs = 20% of the total, and are again a reasonable, budgetable amount. Because of monthly insurance premiums the financial risk of a catastrophic acute health event is dramatically limited ... unless you need long-term custodial care ... ComfortLTC.com