The Employee Benefits Research Institute (EBRI) just released a study showing that a retired couple could require as much as $350,000 to pay healthcare costs in retirement. That is for a couple who is 65 years old in 2016. The report gives multiple examples of difference circumstances and what are the potential health care costs to be incurred by individuals and couples. By comparison, Fidelity has a study, but they only use average. Fidelity says the same couple turning 65 in 2016 would need $260,000 but adds they will need $400,000 if long term care is eventually required.
Why are these numbers significant? Consider the fact that those who are 65 years old in 2016 have an average 401(k) balance of about $95,000. That represents the total people have saved for all their expenses not just health care expenses.
Does this information lead you believe that people will become more or less dependent on the government to pay for health care costs? I am sure our politicians and others will not just let these people be sick and suffer. But answer me, where will the government get the money to pay for those costs? Will our elected officials be forced to raise taxes? Or maybe they will just lower the benefits to people? Or what I think could happen is a combination of the two. However you respond to my questions, another thing seems to be obvious; more families will have to become care givers for each other because they simply do not have the money to seek help.
How will all this affect your family in the future? While you think about your answer I remind you that about 80 percent of Americans don’t really have any money. So will our government be able to raise their taxes and actually collect something? This makes reason stare! Won’t our government go after the 20% who do have some money so the 80% can have health care?
Don’t you think that eventuality should be planned for while you still can do something?