A 65-year-old couple with median prescription drug expenses will need $227,000 to have a 75 percent chance of covering their Medicare premiums and other out-of pocket medical costs after retirement in 2012, according to a recent Employee Benefit Research Institute report.
Retired couples who want a 90 percent chance of being able to pay for their out-of-pocket medical costs will need to have $283,000 upon retirement in 2012, down from $287,000 in 2011. Retirees who are willing to live with a 50 percent chance of covering their health care costs would need $163,000 in 2012. A couple retiring with prescription drug expenses in the 90th percentile is estimated to need $317,000 to cover out-of-pocket medical costs. But retirees who use a lot of prescription drugs also get more benefits from the Affordable Care Act. (USNews)
The idea hear is to save as much as you can to cover these costs. Using products that give you a guaranteed bump from 4 to 7% every year will help ease the amount you actually have to save, as the guaranteed earnings can make life a lot simpler with proper planning.