Thinking of retiring early? Hope you have a lot socked away for medical expenses.
That's because health care costs can add up quickly when you aren't yet eligible for Medicare, which kicks in at age 65.
Someone who retires today at age 55 will spend an average of $119,600 over the next 10 years on insurance premiums and out-of-pocket expenses, said Dale Yamamoto, who authored a report on medical spending on behalf of the Society of Actuaries and the Health Care Costs Institute. By contrast, a 65-year-old leaving the workforce today will spend only $50,900 over the next 10 years thanks mainly to Medicare, which provides less expensive coverage.
One of the study's goals is to help people understand how much money they'll need to retire.
"My neighbors had no idea how much health care costs," he said. "They were floored by how much it costs for just one year before Medicare kicks in."
By the time today's 55-year-old retiree hits age 85, he will have spent $372,400, on average. The 65-year-old retiree will spend only $146,600.
When Suzanne Eva Lain praised Obamacare in a recent CNNMoney article, she never thought it would earn her a ticket to the White House.
But after a member of the Obama administration read that she can't wait for Obamacare to start, officials invited her to attend an event at the White House on Friday at which the president expounded on how the Affordable Care Act has helped women and their families. MORETami Luhby - May 14, 2013 10:42 AM ET
Average health insurance premiums for employer-sponsored family coverage soared 62% between 2003 and 2011, far outpacing the rise in wages, a new study found.
By 2011, there were 35 states in which the annual premium equaled 20% or more of income, according to a study issued Wednesday by The Commonwealth Fund. This compares to just one state in 2003.
Premiums in the south and south-central United States were the highest relative to MORETami Luhby - Dec 12, 2012 12:16 PM ET
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