Retirees Spend More Than One-Third Of Social Security Benefits On Out-Of-Pocket Medical Costs

During 2014, retirees in the United States spent 34.3% of their Social Security benefits on out-of-pocket (OOP) medical costs. During this year, average OOP spending was $4,274 per year. Of that amount, $2,965 (or 69%) was spent on insurance premiums. Between 2002 and 2014, retiree OOP medical spending declined by 20.6%, from $5,385 in 2002 to $4,274 in 2014.

These findings were reported in “How Much Does Out-of-Pocket Medical Spending Eat Away at Retirement Income?” by Melissa McInerney, Matthew S. Rutledge, and Sara Ellen King of the Center for Retirement . . .