How much are folks budgeting in monthly per adult for health insurance?
I put $24k per year into the early retirement budget for health care, but that is an overestimate since at 65 we'll get Medicare.
I used the ACA site to get some estimates. At age 55 in my zip code, it would be $500/mo for a HDHP with $8.5k deductible. So, $6k if i never accessed care, up to $15k out of pocket if I hit the max. That's a huge amount given I have employer subsidized care now with a $3k deductible and monthly premiums about a third of that.
If I had a spouse the premiums and deductible would double, so $12k in premiums, $17k deductible.
Based on my budget this would be a significant expense, but for those with childcare or 529 plans I could see it slotting in.
Well, doing that 25x calculator, we will not need neaaaarly as much as I've planned to save. But yeah, without mortgage (plan to be paid off in about 15yrs or less), 401k/IRA savings, 529 savings, etc... it's a lot less than we spend now.
But really, I am anticipating healthcare to be $$$$. @@one kid that I don't want to saddle with expensive end of life care. And we are in a pretty HCOL area with no plans to move elsewhere. And travel for as long as possible (I lived overseas for five years and have thought of doing similar again).
How much are folks budgeting in monthly per adult for health insurance?
I put $24k per year into the early retirement budget for health care, but that is an overestimate since at 65 we'll get Medicare.
We are calculating $25-30k/year for both of us while DH does his COBRA slide into Medicare. Afterwards, we are calculating around half that or $12k/year for Medigap and prescription plans. That does not count the money that is paid for Part B that will come out of SS when he hits 67. Normally, that is $144/mo, but with him working my Medicare (through disability) is coming in a $187/mo.
My Medicare Medigap disability plans are much worse than getting it through his employer.
I've relied on the ACA for insurance for many years and didn't qualify for a subsidy.* (We currently have insurance through an employer). For a shit, high deductible plan, it was around $400-500 each in IL. $600+ in NC. We are in our late 40's.
* Without the ACA, I couldn't get an individual plan at all due to a pre-existing condition. Keep on mind that if it goes away, it may be difficult to retire at all before you can get medicare.
I assume my ability to retire will be entirely dependent on healthcare. My current insurance-negotiated healthcare expenses are billed at over $200k on a normal year with fantastic employer subsidized insurance - I can't imagine what non-negotiated prices would be. I'll need coverage for a preexisting condition with $$$ meds and frequent infusions, imaging, etc. My husband doesn't have 22+ years left in his industry, so I can see us shifting gears and working much fewer hours/lower wages in exchange for healthcare coverage. The ACA quote I got was $3-4/k mo for a PPO based on my usage, but so much can change with healthcare so I'm not making any assumptions right now.
The other big question mark is our parents. I think my in-laws are saving appropriately for retirement, but I'm fairly certain my gen X father still has a negative net worth and does not at all appear concerned by that.
I can’t remember what the exact number is, but our financial advisor ran our numbers and said we can retire at 62. I was surprised because we are not maxing things out. I come close, but H does not yet. But the financial planner’s calculations did not have us preserving principal forever. I believe it left us with $1 million in the account if we died at 92, which would give each kid $500K and half a house. I’m good with that.
My concern is not so much retirement but the 50s decade. We know SO many people who lost their jobs and couldn’t get back in at a similar salary. We are considering putting any additional increases into non-retirement investment accounts that would help us weather any storms in that decade.
You can put me in the "I don't know" camp, but my Vanguard advisor has our number at $1.4m. That's on top of two healthy defined-benefit pension, which just seems bananas to me. How can we need that much? FWIW, we are on track to reach it, but I just -- I don't know. I've reviewed the scenarios and assumptions, I'd rather save too much now vs not enough, but the whole thing is so mind boggling and wrong.
My concern is not so much retirement but the 50s decade. We know SO many people who lost their jobs and couldn’t get back in at a similar salary. We are considering putting any additional increases into non-retirement investment accounts that would help us weather any storms in that decade.
I am saving a huge percentage of my income so I could survive a very early retirement because I work in an industry where I see this happening and have structured my accounts accordingly. I have been looking for another job and even at my level have been pretty depressed by how few applications I hear back from, and then I don't get past the screener interviews because they're looking for something slightly different.
I am deeply envious of friends in more stable professions and have been investigating what schooling or certifications I could get to move me into a more secure path. In the meantime, my "like to have" number is $1.5M, which is higher than 25x my current spending but I want to account for the increased costs of healthcare and a little buffer since I already live pretty lean.
When you guys are talking about budgeting for healthcare, is that mainly for premiums for coverage between retirement and Medicare? Or also for costs after Medicare starts? This isn't a topic I know a lot about. I have some kind of retiree health coverage thru work but I don't know much about that, either.
When you guys are talking about budgeting for healthcare, is that mainly for premiums for coverage between retirement and Medicare? Or also for costs after Medicare starts? This isn't a topic I know a lot about. I have some kind of retiree health coverage thru work but I don't know much about that, either.
Since we recently retired, rather early. We budgeted $40K a year for health care for our family of 4. DH is 12 years from Medicare, and I am 19. We continue to budget $40K a year, plus a factor for inflation, since we don't really know how health insurance will go. We figure that, if we end up with more access to to health care, that will be offset by tax increases, so it will be a wash for us. We do not expect that we will qualify for any subsidy. Our actual cost for healthcare next year will be $28K + around a $6K deductible, for the 4 of us (kids are 11 and 14) if we use it all. It is the largest line item in our budget. We went to the doctor 6 times last year for all of us, meaning that each visit cost us $5,300, but we have no choice because without it, or with a limited plan, we could end up with a $500K+ for one health event.
When you guys are talking about budgeting for healthcare, is that mainly for premiums for coverage between retirement and Medicare? Or also for costs after Medicare starts? This isn't a topic I know a lot about. I have some kind of retiree health coverage thru work but I don't know much about that, either.
Both.
We already have a HDHP so we pay ~10k a year in costs outside our premiums. I figure that should cover costs once we are 65+. The time before age 65, I'm assuming will be at least an extra 1k a month in increased premiums. But we'll see- so much could change..it could be worth working PT to maintain insurance or something like that. And of course if ACA goes away we won't be able to retire before 65 at all most likely because we both have preexisting conditions.
When you guys are talking about budgeting for healthcare, is that mainly for premiums for coverage between retirement and Medicare? Or also for costs after Medicare starts? This isn't a topic I know a lot about. I have some kind of retiree health coverage thru work but I don't know much about that, either.
Yes, mainly for coverage before Medicare starts, since the question implied early retirement.
Thanks imojoebunny for sharing your actual costs this year. That was helpful.
When you guys are talking about budgeting for healthcare, is that mainly for premiums for coverage between retirement and Medicare? Or also for costs after Medicare starts? This isn't a topic I know a lot about. I have some kind of retiree health coverage thru work but I don't know much about that, either.
We are looking at retirement now. I'm on Medicare through disability, DH is still working and hope to continue until he is 63.5, so he can COBRA his way to Medicare. Once he starts 'COBRAing', we are figuring around $25-30K to maintain his insurance (which is quite excellent, provides international coverage and covers me through disability since my Medigap options are very poor locally). Once he gets Medicare, I think he's looking at around $15K/year for both of us. This also includes possible IRMAA payments that I have to pay out of my disability income right now, and both of us in the future. IRMAA impacts both Part B and Part D of Medicare.
Post by farmvillelover on Jan 17, 2021 16:53:30 GMT -5
6-7mil not including our home. We figure social security will be for healthcare only. We live in a HCOL and want to continue to live in our current lifestyle. We also want to be able to take our family (kids, maybe their families) on vacations and help them financially if they need. We also intend to pay for college costs. There will likely be assets from my parents but I don't factor that into the equation.
I'm 43, H is 45. He is looking to retire in a few years or as soon as we can pay off our house. I'll continue to work until it isn't a good option anymore. Thankfully, I went off on my own and make my own schedule.
Post by covergirl82 on Jan 19, 2021 11:27:47 GMT -5
Probably $2.5 mil. This assumes our mortgage is paid off when DS graduates HS in 2028 and that we pay around 50% of any college or trade school costs (after their 529s are spent). (DS and DD are a year apart in school, so our current mortgage costs would be replaced by college/trade school for 5-ish years. We do have 529s for them, but we're anticipating that will give them each enough to pay around one year of school.) I'd like to retire in about 20 years when I'm around 59.5 (DH would be 61), which would give us around 10 years between DD being done with college/trade school to close any savings gap or save above our goal amount. We would continue to live in an MCOL or lower area.
I know we're behind in retirement savings. 2020 was the last year we will have paid any significant amount in child care costs, so we now have that $5,000 from FSA (plus anything we spent over that) to put toward other financial goals, including retirement. I took a new job in Feb 2020 and increased my 401k contributions from 6% to 8%, which increased the amount per paycheck by 50% from my last job. My old employer had a 2% base contribution and 2% match (50% of up to 4%), and my new employer has a 3% base contribution, 3% match (50% of up to 6%), and 401k profit sharing (3% target). We're on track for a 3% profit sharing payout for 2020. I'd like DH to increase his contributions from 6% to 7% or 8% after he gets his merit increase. (He gets a 1% base contribution and match of 3% (50% of up to 6%) from his employer.) This will help us close the gap as well.