How to Budget for Health Costs in Retirement

Medicare beneficiaries should prepare for sometimes significant out-of-pocket expenses.

Medicare beneficiaries should prepare for sometimes significant out-of-pocket expenses
By SHARE

People who don't have a large enough nest egg to set aside a quarter of a million dollars specifically for retirement health care expenses are likely to spend a growing portion of their Social Security checks on medical bills. "The Medicare premium portions are deducted from your Social Security check," says Dallas Salisbury, president of the Employee Benefit Research Institute. "For the low- and moderate-income person, that can now be a very significant portion of your Social Security check."