Retirement Medical Savings Required: $376,000

$376,000 is the highest amount recommended by the Employee Benefit Research Institute in a report released yesterday. What the EBRI, which is a D.C.-based public policy group, recommends for a couple, with premiums not subsidized by their former employer, have approximately $376,000 if they are not willing to take on any risk (meaning they don’t want to save less and risk being underfunded). So, while the $376,000 does appear scary, at least we know that’s the recommended maximum.

According to a report released Tuesday, the retirement health tab can run between $64,000 and $122,000 for a 65-year-old man whose former employer pays his insurance premiums, and between $86,000 and $140,000 for a woman of the same age. For retirees who don’t have access to an employer-offered plan, the costs – mostly for prescription drugs – run even higher [Source: CNN Money].

The table in the article outlines most scenarios (permutations of the premium covered or subsidized or not at all subsidized by employer, the age and gender of the retiree) with the lowest dollar amount being a 65-year old man willing to take on a high level of risk and who has premiums covered by the former employer ($64,000).

Here’s another interesting stat, according to the Metropolitan Life Insurance Co. (that’s MetLife), the average cost of a private room in a nursing home is $77,745 a year. The price at an assisted living community is $35,628 a year.