Minorities Underestimate Retiree Health Care Costs

Coming up short: African-American and Hispanic workers are more likely to underestimate the amount of money they will need to save for health care costs in retirement, according to a survey by the Employee Benefits Research Institute. Compared to 12 percent of all workers, 22 percent of African Americans and 18 percent of Hispanics believe they will need less than $50,000 in savings to pay for health care when they retire. A recent study by the group estimated that couples over age 65 will need at least $300,000 to cover their health care costs in retirement, assuming Medicare benefits remain at current levels. More than half of all workers, 52 percent, underestimate the amount of health care savings needed for retirement.