With the passage of new healthcare legislation, more and more eyes are set upon the rising cost of healthcare and how best to contain it. Due to the imminence of the situation, most eyes fall upon the cost of healthcare for senior citizens and those nearing retirement age. However, the true impact of these rising costs threatens to be much more detrimental on the younger populations.
In fact, research being conducted by AARP tends to show that when out-of-pocket medical expenses are taken into account, the median retirement income of future retirees (at age 70), net of health expenses, is expected to be about $27,000 . . . the same as that of current retirees. In essence, medical expenses will wipe out any retirement income gains for future retirees and projected declines in the poverty rate among retirees will be eliminated by the rise in healthcare costs.
To learn more about how healthcare spending may derail your retirement, read this article.