Rising out-of-pocket costs threaten seniors' retirement

By Ginny Kipling

August 30, 2010 at 08:00 PM

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Unless health care practices or public policy change, seniors' out-of-pocket spending will likely grow in coming years as health care costs continue to increase.

50% increase in the median annual real out-of-pocket costs for Americans age 65 and older, from about $2,600 to about $6,200 in the next 30 years.

One in 10 older adults will spend more than $14,000 per year on health care in 2040.

9% increase in the median share of household income spent on health care by adults age 65 and older, between 2010 and 2040.

17% increase by 2030, and 27% increase by 2040, in the share of adults age 65 and older spending more than a fifth of their household income on health care.

52% increase in the share of older Americans with burdensome costs if employers eliminate all retiree health benefits by 2040.

18% increase between 2010 and 2040 of the median share of income spent on health care by older adults in the bottom fifth of the income distribution.

Source: Urban Institute

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