10K boomers retire daily, but struggle with healthcare costs
- Boomers are retiring at a rate of 10,000 a day, BenefitsPro reports, citing Pew Research and Social Security Administration figures. Retired couples age 65 can expect to pay out-of-pocket healthcare expenses of $275,000, a cost that excludes rehabilitation and long-term nursing care. Whats more, retirees have only a 50-50 chance of being able to cover these costs, says BenefitsPro.
- Along with the annual flood of retirees, healthcare costs will continue to rise, even faster than the growth of the economy, says BenefitsPro. Over time, Medicare taxes and trust funds will cover fewer expenses. Pundits reportedly predict that by 2033, taxes will cover just 48% of the costs and the trust funds will be bankrupt.
- Boomers also are living longer with such chronic diseases as hypertension, diabetes, high cholesterol and obesity, putting additional pressure on the healthcare system, according to the report.
Will Medicare and Medicaid be able to cover the number of retiring boomers? Maybe the next few waves of retirees won't need to worry, but that's not likely to be the case for those who follow.
More older workers are staying in the workforce because they can't live on their retirement savings. News of health-related costs rising beyond the reach of most boomers will keep even more in the workplace.
This dire forecast dredges up other questions. Will employers be able to accommodate older workers' need to postpone retirement while absorbing the high cost of their healthcare? Will the number of retiring boomers create a brain drain on the workplace and widen the talent gap? And will there be enough healthcare workers to care for aging boomers? The outlook on these and other elements doesn't look positive, and could require both legislative remedies and proactive maneuvers by employers.