EBRI Fast Facts

Saving for Health Care Expenses in Retirement Can Be Daunting

Jan 25, 2024 4  pages


Health care costs in retirement can be considerable and may not necessarily be a salient issue for workers. To project how much Medicare beneficiaries may need to save to have a reasonable chance of meeting their health care spending requirements in retirement, EBRI built a simulation model allowing for uncertainty due to mortality and rates of return on assets in retirement, incorporating recent legislative changes and testing varying assumptions about Medicare Advantage and Medigap plans that Medicare beneficiaries may purchase. This Fast Fact presents some of the top conclusions from the analysis of this updated model.