Projected Savings Medicare Beneficiaries Need for Health Expenses Spike in 2021 (link). True, but probably not as dramatic as it reads. The total numbers look stunning.
For a 90 percent chance of having enough savings, the man needs $142,000 and the woman needs $159,000. This is up 9 percent from 2020.
The issue is that no one says you need the entire amount right now. We aren’t even sure what calculation method was used here.
The article projects the assumption of Medigap Plan G, which is fine. However, it also fails to mention that adjustments can be made so that if Medigap premiums become excessively high, a person can switch to Medicare Advantage (under the assumption that the current structure remains the same.
So while this article is true, and consistent with my fave Medicare book (ahem), that fiscal and demographic stress is here to stay, these figures are there for shock value. That doesn’t make them wrong, let’s presume they know how to add, that is beyond dispute.
The Financial QB, on iHeart radio, on Saturday, January 29th, 9AM ET.