Help With Retirement Budgets

If you’re budgeting for retirement, helping family members with college savings or weighing the value of a reverse mortgage, spend some time with these resources, all published recently:

Health Expenses

One of the largest, and trickiest, items to budget for in retirement is health care. You can find some good numbers—and a bit of good news—on the website of the Washington-based Employee Benefit Research Institute.

In a study published in October, the group reported that savings targets for health-insurance premiums and out-of-pocket health-care expenses in retirement were 2% to 10% smaller in 2014 than in 2013, depending on savers’ prescription-drug needs and how certain they wanted to be that they could cover health-care costs. (The primary reason for the lower targets: slowing growth nationwide in health-care spending.)

Of course, the targets are still sizable: Assuming median prescription-drug expenses throughout retirement, a man who turned 65 in 2014 needed $64,000 in accumulated savings and a woman $83,000 to have a 50% chance of covering medical bills in later life, according to the institute…

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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