According to a recent U.S. Census Bureau report, the number of Americans covered by a government health insurance plan as of 2005 was 38.1 million, a number that represents no meaningful statistical change between 2004 and 2005.
The Medicare crisis has been a looming problem for the U.S. government and taxpayers, but it could hit retirees just as hard.
The 2006 Retirement Confidence Survey conducted by the Employee Benefit Research Institute showed that Americans age 55 who live to age 90 would need to have accumulated $210,000 (by age 65) to pay for insurance to supplement Medicare and out-of-pocket medical expenses in retirement. However, when asked about financial planning, nearly six in 10 current workers admitted that neither they nor their spouse have calculated how much money they would need to retire comfortably. Furthermore, of those who did estimate retirement costs, 8% said they arrived at an answer by guessing.
These findings suggest many workers are not planning and saving enough to finance the full amount of time they expect to be in retirement.