Retirement health costs can be daunting, and a new study has found that women will need to save more for health care costs when they retire.
Because they live longer than men, women will need to save about 15 percent as much as men before retirement in order to cover out-of-pocket health care expenses and premiums during retirement, according to a report released this week by the Washington think-tank Employee Benefit Research Institute (EBRI).
Men retiring in 2010 at the age of 65 will need to save about $124,000 to $211,000 to be 90 percent confident they can cover health expenses during retirement, while women will need $143,000 to $242,000 to do the same.
However, many Americans retire before the age of 65, which would incur additional health costs and expenses, the EBRI wrote in the report “Funding Savings Needed for Health Expenses for Persons Eligible for Medicare.”
Americans, as a whole, don’t save enough to cover the combination of day-to-day and health care retirement expenses, the report noted.
“Many workers are generally unprepared for both health care expenses in retirement and retirement expenses,” Dallas Salisburg, CEO of EBRI and co-author of the study, said in a statement. “In fact, many individuals will need more money than the amounts cited in this report.”
Because they live longer than men, women will need to save about 15 percent as much as men before retirement in order to cover out-of-pocket health care expenses and premiums during retirement, according to a report released this week by the Washington think-tank Employee Benefit Research Institute (EBRI).
Men retiring in 2010 at the age of 65 will need to save about $124,000 to $211,000 to be 90 percent confident they can cover health expenses during retirement, while women will need $143,000 to $242,000 to do the same.
However, many Americans retire before the age of 65, which would incur additional health costs and expenses, the EBRI wrote in the report “Funding Savings Needed for Health Expenses for Persons Eligible for Medicare.”
Americans, as a whole, don’t save enough to cover the combination of day-to-day and health care retirement expenses, the report noted.
“Many workers are generally unprepared for both health care expenses in retirement and retirement expenses,” Dallas Salisburg, CEO of EBRI and co-author of the study, said in a statement. “In fact, many individuals will need more money than the amounts cited in this report.”
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