Baby Boomers are generally defined as those who were born between 1945 and 1964. Being born 1963 means that I barely made it into this demographic. Since I rarely identify myself as a boomer I tend to ignore any news or studies that relate to this age group. That is until today…..
As I was driving to the gym, I heard an interesting statement on public radio. Apparently, those in the know are projecting that those of us who were born between 1958 and 1964 will pay 25% of our medical costs out of pocket after retirement. Take a moment and let that sink in. TWENTY-FIVE PERCENT!
After hearing this, I began to think about what many of us who were born during that six year time period will end up paying. So I googled baby boomers and healthcare and came across this report from the American Hospital Association and the FCG.
Here’s a few highlights of what you may have to spend your hard earned retirement savings on:
- More than six of every 10 Boomers will be managing more than one or more chronic condition such as hypertension, high cholesterol, arthritis, diabetes, heart disease, or cancer.
- More than one out of every three Boomers – over 21 million – will be considered obese.
- One of every four Boomers – 14 million – will be living with diabetes.
- Nearly one out of every two Boomers – more than 26 million – will be living with arthritis.
- Eight times more knee replacements will be performed than today.
I’ve often said that you will have to pay to take care of yourself one way or another. You either pay now by choosing a healthy lifestyle or you’ll pay for medical care later. And, according to the report I heard today you may end up paying 25% of your health care costs after retirement.
So let’s do a little bit of math…….
According to Google, we are paying the following costs today:
- The average cost to traditional health insurers for the first 90 days following a heart attack is $38,501. If you have to pay 25% of that out of pocket your cost will be $9625.25.
- People with diagnosed diabetes incur average medical expenditures of about $13,700 per year. If you have to pay 25% of that out of pocket your cost will be $3,425.00.
- Obese people spend 42% more on healthcare costs than healthyweight people.
And, you know what? These costs will only continue to skyrocket as we age.
Now me, I’m almost 52 and rather than figuring out what I’ll have to give up to pay my medical bills when the time comes, I’d rather be thinking about what I can do today to prevent these diseases in my life. I’d rather spend my money now on good food, gym memberships, along with toys like paddle boards and bicycles than pay doctor’s bills later.
And, let’s not forget about time. I’d rather be having fun today enjoying a good meal or kayaking across the waves than spend hours waiting to see my doctor or hear about my lab reports.
What about you?