Projecting retiree healthcare costs is complex. Milliman’s estimates are developed to help educate employees and retirees about the potential cost of retiree healthcare. Below are some recent findings:
- A healthy 65-year-old couple retiring in 2019 is projected to spend $369,000 in today’s dollars ($551,000 in future dollars) on healthcare over their lifetime, and expenses at age 85 are estimated to be 250% higher than at age 65.
- A healthy 67-year-old retired couple is projected to spend 39% of their pre-tax Social Security benefit on healthcare in 2019.
- A healthy 45-year-old couple who retires at age 65 is projected to pay $532,000 in 2019 dollars, and $1.4 million over their retirement years, for retiree healthcare.
- The estimated 2019 annual premium plus out-of-pocket cost for a healthy 65-year-old is $5,000.