If you are thinking about retirement in the next few years, you may be starting to look at income and expenses in retirement. One of the expenses that might come as a surprise to you is the cost of health care insurance. Many employers pay a majority of your insurance costs while you are working, so it may be a shock to see how much insurance can cost in retirement.
To help you crunch the numbers, below are the average monthly premiums for retirees in our PERACare plans for 2021.
- Average monthly premium in 2021 for PERACare retiree-only coverage – Under 65: $971
- Average monthly premium in 2021 for PERACare retiree-only coverage – 65+: $209, plus $148.50 for Medicare Part B premiums
PERA does provide a health care subsidy to retirees based on years of service up to 20. The subsidy is capped at $230 for retirees under 65, and $115 for retirees 65 or older. In addition to the premium, be sure to factor in deductible, copays, and other costs when considering your health care budget.
We hope this provides you a general idea of what health care may cost for you in retirement. If you would like to learn about our PERACare health care plans and their costs, we encourage you to attend a PERACare Information Webinar before you retire.