Download or read book Saving for Health Care Expenses in Retirement written by Paul Fronstin and published by . This book was released on 2008 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the savings needed to cover health insurance premiums and out-of-pocket expenses for health care services in retirement and evaluates the use of health savings accounts (HSAs) to save for those expenses. Proponents of HSAs often tout them as a vehicle for funding future retiree health care costs. But, while HSAs represent an important option for consumers seeking more control over their health care spending, statutory contribution limits make it unlikely that these accounts will play more than a minor part in savings for health care costs in retirement. This research shows that while HSAs can be used to save for health care expenses in retirement, the maximum savings that can be accumulated in an HSA will be far from sufficient to fully cover the savings needed in retirement for insurance premiums and out-of-pocket expenses. One of the difficulties in using an HSA to save money for premiums and out-of-pocket expenses during retirement is that individuals also can (and may need to) use the money in the account to pay for health care services during their working years or to pay COBRA premiums and insurance premiums during periods of unemployment. The PDF for the above title, published in the August 2008 issue of EBRI Notes, also contains the fulltext of another August 2008 EBRI Notes article abstracted on SSRN: quot;The Impact of Immigration on Health Insurance Coverage in the United States, 1994-2006.quot.
Download or read book Health Care Expenses in Retirement and the Use of Health Savings Accounts written by Paul Fronstin and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new Medicare drug law that was enacted in late 2003 makes two changes that supporters of the law say should make it easier for today's workers to prepare to pay the medical bills they will confront in retirement: prescription drug benefits (the new Medicare Part D) and health savings accounts (HSAs). This paper examines the impact of Medicare Part D on savings needed for insurance premiums to supplement Medicare, Medicare Part B and D premiums, and out-of-pocket expenses in retirement, and examines the viability of using HSAs to save for these expenses. It presents a wide range of estimates based on various ages at the time of death, because longevity risk is a major threat to retirement income security. This range of estimates also varies with various assumptions regarding health insurance premium inflation rates and out-of-pocket expenses. Projecting the amount needed for medical expenses in retirement is tentative and complex because it requires conclusions about the range by which medical inflation will exceed consumer prices generally, as well as assumptions about whether medical practices will change in a way that makes Medicare coverage for a given ailment more or less likely.
Download or read book Medical and Dental Expenses written by and published by . This book was released on 1990 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Savings Needed to Fund Health Insurance and Health Care Expenses in Retirement written by Paul Fronstin and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the cost of health insurance and health care expenses in retirement. It examines recent trends in private- and public-sector retiree health benefits and the impact of these trends on current and future retirees. It also presents options that retirees currently have to supplement the Medicare program, and provides estimates of how much those options will cost current and future retirees.
Download or read book Determining Living Expenses for Retirement written by James W. Walker and published by Pearson Education. This book was released on 2009-12-15 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Element is an excerpt from Work Wanted: Protect Your Retirement Plans in Uncertain Times (ISBN: 9780132354646) by James W. Walker and Linda H. Lewis. Available in print and digital formats. Be prepared: a realistic, indispensable new look at what you’ll really be spending when you retire. You are likely counting on pension, savings, and health programs from your employer to sustain you in retirement. Combined with personal savings and Social Security, you reasonably expect retirement to be enjoyable and secure. However, many people underestimate their financial needs and overestimate their prospective resources. You may need to take a fresh look at your financial situation....
Download or read book Funding Savings Needed for Health Expenses for Persons Eligible for Medicare written by Paul Fronstin and published by . This book was released on 2010 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Amount of Savings Needed for Health Expenses for People Eligible for Medicare written by Paul Fronstin and published by . This book was released on 2013 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper updates previous estimates by the Employee Benefit Research Institute on savings needed to cover health insurance premiums and health care expenses in retirement. Much like EBRI's 2012 report, this analysis finds that the savings targets for a 65-year-old retiring in 2013 were not higher than the savings targets for a 65-year-old in the previous year. In fact, these particular savings targets have continued to fall, with the decline ranging from 6-11 percent. This report discusses the model, the savings targets, and continued reasons for the decline in savings targets. In 2010, Medicare covered 62 percent of the cost of health care services for Medicare beneficiaries age 65 and older, while out-of-pocket spending accounted for 12 percent, and private insurance covered 13 percent. Individuals can expect to pay a greater share of their costs out-of-pocket in the future because of the combination of the financial condition of the Medicare program and cutbacks to employment-based retiree health programs. Because women have longer life expectancies than men, women will generally need larger savings than men to cover health insurance premiums and health care expenses in retirement post-65 when examining needed savings regardless of the savings targets. In 2013, a man would need $65,000 in savings and a woman would need $86,000 if each had a goal of having a 50 percent chance of having enough money saved to cover health care expenses in retirement. If either instead wanted a 90 percent chance of having enough savings, $122,000 would be needed for a man and $139,000 would be needed for a woman. Savings targets declined between 6 percent and 11 percent between 2012 and 2013 for a person or couple age 65. For a married couple both with drug expenses at the 90th percentile throughout retirement who wanted a 90 percent chance of having enough money saved for health care expenses in retirement by age 65, targeted savings fell from $387,000 in 2012 to $360,000 in 2013. The PDF for the above title, published in the October 2013 issue of EBRI Notes, also contains the fulltext of another October 2013 EBRI Notes article abstracted on SSRN: “IRA Asset Allocation, 2011.”
Download or read book Savings Needed for Health Expenses for People Eligible for Medicare written by Paul Fronstin and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides estimates for savings needed to cover health insurance to supplement Medicare and out-of-pocket expenses for health care services in retirement. Medicare generally covers only about 60 percent of the cost of health care services (not including long-term care) for Medicare beneficiaries ages 65 and older, while out-of-pocket spending accounts for 13 percent. The Patient Protection and Affordable Care Act (PPACA) reduces cost sharing in the Part D “donut hole” down to 25 percent by 2020. This year-to-year reduction in coinsurance will continue to reduce savings needed for health care expenses in retirement, all else equal, for individuals with the highest prescription drug use. EBRI analysis finds 1-2 percent reductions in needed savings among individuals with median drug use and 4-5 percent reductions in needed savings among individuals at the 90th percentile in drug use since EBRI's 2011 analysis. A 65-year-old man would need $70,000 in savings and a woman would need $93,000 in 2012 if each had a goal of having a 50 percent chance of having enough money saved to cover health care expenses (excluding long-term care) in retirement. A 65-year-old couple, both with median drug expenses, would need $163,000 in 2012 to have a 50 percent chance of having enough money to cover health care expenses (excluding long-term care) in retirement, $227,000 to have a 75 percent chance of covering those expenses, and $283,000 to have a 90 percent chance of doing so. These estimates are 1-2 percent lower than the savings targets estimated in 2011. Many individuals will need more money than the amounts cited in this report because this analysis does not factor in the savings needed to cover long-term care expenses, nor does it take into account the fact that many individuals retire prior to becoming eligible for Medicare. However, some workers will need to save less than what is reported if they choose to work during retirement, thereby postponing enrollment in Medicare Parts B and D if they receive health benefits as active workers. Finally, issues surrounding retirement income security are certain to become an even greater challenge in the future as employers continue to scale back retiree health benefits and as policymakers begin to address financial shortfalls in the Medicare program with solutions that are likely to shift more responsibility for health care costs to Medicare beneficiaries. The PDF for the above title, published in the October 2012 issue of EBRI Notes, also contains the fulltext of another October 2012 EBRI Notes article abstracted on SSRN: “IRA Asset Allocation, 2010.”
Download or read book Savings Fitness written by Barry Leonard and published by DIANE Publishing. This book was released on 2007-12 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many people mistakenly believe that Social Security (SS) will pay for all or most of their retire. needs, but the fact is, since its inception, SS has provided little protection. A comfortable retire. usually requires SS, pensions, personal savings & invest. The key tool for making a secure retire. a reality is financial planning. It will help clarify your retire. goals as well as other financial goals you want to ¿buy¿ along the way. It will show you how to manage your money so you can afford today¿s needs yet still fund tomorrow¿s. You¿ll learn how to save your money to make it work for you & how to protect it so it will be there when you need it. Explains how you can take the best advantage of retire. plans at work, & what to do if you¿re on your own. Illustrations.
Download or read book Savings Needed for Health Expenses in Retirement written by Paul Fronstin and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper updates earlier EBRI research on estimated savings needed to cover health insurance to supplement Medicare and out-of-pocket expenses for health care services in retirement. It finds that men retiring at age 65 in 2009 will need anywhere from $68,000 to $173,000 in savings to cover health insurance premiums and out-of-pocket expenses in retirement if they want a 50-50 chance of being able to have enough money, and $134,000 to $378,000 if they prefer a 90 percent chance. With their greater longevity, women will need more: a woman retiring at age 65 in 2009 will need anywhere from $98,000 to $242,000 in savings to cover health insurance premiums and out-of-pocket expenses in retirement for a 50-50 chance of having enough money, and $164,000 to $450,000 for a 90 percent chance. For those seeking a median (50 percent) chance of having enough money for health care in retirement, these estimates are about 9 percent higher than a year ago for men and married couples, and 16 percent higher for single women. Many individuals will need more money than the amounts cited in this report because this analysis does not factor in the savings needed to cover long-term care expenses, nor does it take into account the fact that many individuals retire prior to becoming eligible for Medicare. However, some workers will need to save less than what is reported if they choose to work during retirement and receive health benefits as active workers. The PDF for the above title, published in the June 2009 issue of EBRI Notes, also contains the fulltext of another June 2009 EBRI Notes article abstracted on SSRN: “Many 401(k) Sponsors Suspending Matching Contributions Are Funding Defined Benefit Pension Plans.”
Download or read book Amount of Savings Needed for Health Expenses for People Eligible for Medicare written by Paul Fronstin and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper updates previous estimates by the Employee Benefit Research Institute (EBRI) on savings needed to cover health insurance premiums and health care expenses in retirement. This report discusses the model used to estimate the amount of savings needed, the savings targets, and reasons for the recent increase in savings targets. This analysis does not factor in the savings needed to cover long-term care expenses. Medicare beneficiaries pay a share of their health expenses out-of-pocket because of program deductibles and other cost sharing. In 2015, a 65-year-old man needs $68,000 in savings and a 65-year-old woman needs $89,000 if each has a goal of having a 50 percent chance of having enough money saved to cover health care expenses in retirement. If either instead wants a 90 percent chance of having enough savings, $124,000 is needed for a man and $140,000 is needed for a woman. Savings targets increased from 6-21 percent between 2014 and 2015. For a married couple both with drug expenses at the 90th percentile throughout retirement who want a 90 percent chance of having enough money saved for health care expenses in retirement by age 65, targeted savings increased from $326,000 in 2014 to $392,000 in 2015. The main reason for the increase in needed savings is related to the adjustment that is made each year to rebaseline out-of-pocket spending associated with prescription drug use. As a result of the rebaselining, data on out-of-pocket spending for prescription drugs for 2012 and beyond have increased. The Patient Protection and Affordable Care Act (PPACA) is reducing cost sharing in the Medicare Part D coverage gap or so-called “donut hole.” By 2020, coinsurance in the coverage gap will be phased in to 25 percent. This year-to-year reduction in coinsurance will continue to reduce the savings needed for health care expenses in retirement, all else equal, for individuals with the highest drug use, which is one reason why this analysis finds past reductions in needed savings for health care expenses in retirement. Improvements in the outlook for growth in premiums related to the Medicare program also contributed to past declines in savings targets. However, more recently, these declines were offset by larger increases in out-of-pocket spending on prescription drugs as a result of rebaselining.
Download or read book Goodbye Medical Savings Accounts Hello Health Savings Accounts Health Reimbursement Accounts and Flexible Spending Accounts written by John Brom and published by Lorman Business Center. This book was released on 2004 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Top of the First The Convergence of Health Care and Financial Planning written by Peter Stahl and published by . This book was released on 2020-02-04 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: How much will Health Care cost during retirement? How will Medicare impact my Social Security Benefit? How do I best prepare for health care costs prior to and during retirement? Health care is a prevalent topic in our nation, the political landscape and certainly in the financial services industry. Much of the attention is drawn to the Patient Protection & Affordable Act and its impact on health care coverage in the work place. It is equally important, however, to focus our attention on health care during retirement and the massive impact it can have on our financial plans. To provide a comprehensive and effective retirement income plan, one must understand critical components, including Medicare and custodial care. Health care expenditures will be the largest retirement cost most individuals will face. Choosing the most effective means of saving and investing will make a meaningful difference on the quality of your retirement years. Traditional approaches to financial planning should be modified in order to best prepare.
Download or read book The Consumer s Guide to Health Savings Accounts written by JoAnn Mills Laing and published by ibooks. This book was released on 2019-03-27 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: “Let’s get the consumer in the game. The idea behind HSAs is a ‘supercharged IRA’ for health care...No other program is as tax advantaged.” –John W. Snow, Treasury Secretary “...HSAs can drastically lower an employer’s costs of providing employee health benefits. This may allow more small businesses to offer such benefits.” –Fed Brock, The New York Times “These accounts give workers the security of insurance against major illness, the opportunity to save tax-free for routine health expenses, and the freedom of knowing you can take your account with you whenever you change jobs.” –President George W. Bush “Laing’s new book (The Small Business Guide to HSAs) lives up to its name...an excellent explanation of how HSAs work...” –Greg Scandlen, The New York Post The Consumer’s Guide to HSAs answers the question “What’s in it for Me?” But responsibility doesn’t stop there. You must read your medical reports, check statements, and count your pills carefully. Ask questions. Keep records for future use, and soon you will realize as much of the benefits of consumer-driven health care and HSAs as possible.
Download or read book The Use of Health Savings Accounts for Health Care in Retirement written by Paul Fronstin and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the savings needed to cover health insurance premiums and out-of-pocket expenses for health care services in retirement and evaluates the use of health savings accounts (HSAs) to save for those expenses. Proponents of HSAs often tout them as a vehicle for funding future retiree health care costs. However, statutory contribution limits mean that they are unlikely to play more than a minor part in savings for health care costs in retirement. If an individual age 55 in 2009 were to contribute $3,000 to his or her HSA and also contribute the $1,000 catch-up contribution each year for 10 years, $48,300 would be in the account after 10 years at a 2 percent interest rate. And if the interest rate was 5 percent, $55,100 would be accumulated at the end of 10 years. Such savings levels by themselves are inadequate to cover health costs in retirement. A man age 55 in 2009 would need between $144,000-$290,000 by the time he reached age 65 in 2019 (depending upon his use of prescription drugs in retirement) to have a 50 percent chance of being able to cover premiums and out-of-pocket expenses for Medigap and Medicare Part D. Thus, a 55-year-old man would be able to use an HSA to accumulate between 16-32 percent of needed savings for insurance premiums and out-of-pocket expenses in retirement for a 50-50 chance of having enough savings. For a 90 percent chance, the maximum HSA savings would cover between 7-16 percent of the necessary savings amount. Women, who live longer than men on average, will need more. The PDF for the above title, published in the April 2010 issue of EBRI Notes, also contains the fulltext of another April 2010 EBRI Notes article abstracted on SSRN: “Tax Expenditures and Employee Benefits: Estimates from the FY 2011 Budget.”
Download or read book Have You Ever Been Bitten by an Elephant written by Drew Blackston and published by . This book was released on 2020-08-17 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors of "Have You Ever Been Bitten by an Elephant? The Definitive Guide for Retiring Well" have met with over 10,000 individuals and families from across this great country to create an informative and fascinating look at retirement planning for the complex needs of today's retirees. Their unending desire to create custom and comprehensive financial planning for both retirees and pre-retirees has allowed them to have the unique knowledge, experience and insight to help almost anyone looking to maximize what they have worked so hard to accumulate. As you read this book, it takes you on a journey through the triumphs of smart and solid planning, as well as guiding you pas the most common pitfalls that derail so many retirees. So you may be wondering how an elephant bite can affect your retirement. Take a seat. Grab a pad and pen, because the answer will astound you. The Blackstons donate 100 percent of their proceeds from the sales of this book on Amazon to the Villages Honor Flight.
Download or read book Medicare Made Easy written by Joshua Mungavin and published by Josh Mungavin. This book was released on 2018-08-06 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Enrolling in Medicare is like being blindfolded and asked to navigate a maze you've never seen before with a crowd all yelling out different directions to you. All the while knowing the consequences of a wrong decision can last a lifetime. Medicare Made Easy breaks down each component of Medicare and walks you through, step by step, providing the resources you need along the way. With basic definitions and extensive information, this book compiles the most valuable information into one easy to read place. Everything you need to know about Medicare is at your disposal. This book dives into the difference between: • What You Need to Know About Medicare • General Medicare Overview • Medicare Part A • Medicare Part B • Medigap • Medicare Advantage • Structuring Income for Medicare Purposes • PACE Coverage • Medicare Appeals • Where to Go for Extra Information Employing the strategies in this book can help you save tens of thousands of dollars in premiums, co-pays, deductibles, and prescription drugs. Once you've gone through the steps outlined here you will know you have done what you need to do to make the most of your benefits, and you'll be confident in your choices or at least know the right questions to ask.
