This topic contains 4 replies, has 4 voices, and was last updated by 
fg 1 month ago.
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Share your perspective…
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What is your reaction to Ron’s estimates when you compare them with your own planning or the planning you do on behalf of your clients?
It is well worth reading HealthView’s more detailed explanation of IRRs and Health Care Costs. http://riia-usa.org/commentary-gao-report-highlights-challenges-fails-to-factor-in-rising-health-care-costs/
I was surprised to see by how much IRRs will fall short when it comes to covering health care in retirement. The assumption that we can project health care costs forward using basic inflation is problematic when health care inflation is 2-3 times underlying inflation. It wasn’t long ago that we didn’t give much thought to health care costs in the workplace because the base was relatively low. As costs have risen and taken up a bigger portion of our personal budgets, increases of 4-6% or more a year become very meaningful on a higher base. The same will be true with health care in retirement.
