Effect Of Out-Of-Pocket Medical Spending On Retirement Income

A new paper from the Center for Retirement Research at Boston College indicates that the adequacy of retirement income from Social Security benefits and other sources is substantially reduced by Medicare’s high out-of-pocket (OOP) costs. With less than two-thirds of their Social Security benefits available for non-medical consumption, and limited income outside of Social Security for much of the elderly population, many retirees likely feel that making ends meet is difficult.

The paper can be obtained at http://crr.bc.edu/wp-content/uploads/2017/09/wp_2017-13.pdf.