03.12.10
Lifetime Retiree Health Care Costs, Study
A new study by Boston College’s Center for Retirement Research indicates that lifetime costs for a retiree household is $197,000 (present value). This includes insurance premiums, home health care, and out-of-pocket costs, but excludes nursing home costs. But a typical household also has a 5% chance costs will exceed $311,000. When nursing home costs are included, the typical couple’s bill rises to $260,000, on average, with a 5% risk of exceeding $570,000. And less than 15% of households have accumulated that amount in total financial assets. Bar none, nursing home or long-term care costs are the greatest risk to household retirement security, they report.
Long-term care expenses are an insurable risk.
