You're watching...
Bud Hebeler, author of “Your Winning Retirement Plan,” on the cost of health-care coverage in retirement and what Americans need to have saved.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
I healthcare costs speaking -- smoking growing a growing burden for retirees Fidelity Investments latest survey says couples looking to retire this year we'll need 240.
-- -- dollars fully have to cover their health care costs.
Our next guest says the majority of Americans are just not prepared for this -- majority of Americans and even knew this was the size of the bill.
But able -- author of you're winning retirement plan and develop our retirement planning website and highs -- now joins us now.
But I put that number.
-- I think that number -- maybe slightly optimistic.
I've already been spent over 240000.
Dollars in the 23 years I've been -- -- They came up with the number by adding that Medicare premiums to date -- -- the health care Medigap insurance.
-- some numbers for uninsured.
And add those three things together they came up about 101500.
Dollars a year and we are spending more than that on those comparable item.
-- the problem it had a the -- -- today is though that our hope you're closer rising much faster than our income that's really bottom line the problem wasn't now obamacare supposed to fix all this.
Well I don't I don't know that it will I don't think.
From everything I've heard it probably won't but I don't think we'll go for a couple of years.
OK so -- -- things that you're suggesting people do are actually put off collecting Social Security.
What how and why.
-- you get -- much larger Social Security payment if you delay at roughly 8% more per year.
And that's -- that's an annuity which has a cost of living escalator audit.
And it's very difficult to find a commercial.
Annuity which we come anywhere close to having those benefits.
To say nothing about the survivor benefits and Social Security offers which are wonderful.
So there's nothing that's competitive it's the best investment a retiree can make history delay Social Security.
If you re not yourself -- -- survivors I agree with you now let's talk about and Medicare itself I don't think a lot of people realize.
Medicare doesn't cover everything.
No it doesn't cover down on high end here and we've had some substantial dental bills over the years.
We've had a couple of years where our total of our insurance premiums and uninsured.
When we -- for the dental approach party thousand dollars flat.
Do medical savings accounts help put on a situation like this.
Yeah I think that's a good idea -- with that medical savings account you have to have a large.
Deductible but.
It's probably worth it.
And have not long term health care is that as something that maybe.
Especially younger people should be thinking about as they head into retirement.
Well if they're very young I don't think you think about it I think panicky about it when you're in your fifties.
And it's -- very controversial subject.
Just in itself if you're going to be on Medicaid.
With because of low income you don't -- -- if you have a very large income and save a lot of money you don't want it so it's in between and even in between.
It's a difficult situation because -- you have to be able to afford the premiums.
That's very -- and that's why the younger you do long term health care the better I guess at the end of the day but -- just hasn't put it on that radar start thinking about increasing their income.
In retirement but have a Larry thank you for taking the time of the US.
You're welcome 240000.
Dollar number is scary but.
Don't they think about that after he got -- claimant.
