Shockingly enough, if you retire this year there is a good possibility that you will need up to $378,000 in savings just to handle your insurance premiums and out-of-pocket expenses. Bet that made you sit up and take notice. That amount is for a male; a female’s calculation is higher because they live longer. Their estimates may be as high as $450,000. That’s a LOT of money!
While it may sound like it’s way out of line, the truth of the matter is that health care usually represents 12% to 14% of expenses for seniors. It’s going to be tough to save that kind of money for the future. You could always decide to take a chance and go for a lower amount, but that depends on how you feel about taking risks with your health. Having a 50/50 chance of having enough money to manage is quite risky. It’s a tough decision at 65 when you thought you had enough money to have a decent retirement.