Summary
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.