Quiz: Retirement Health Care Costs

Know how much to save for health care in retirement?

AARP

En español

Published February 10, 2014

6 Questions

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Quiz: Retirement Health Care Costs

[ {
  "question" : "On average, how much will a 65-year-old couple retiring within a year spend on health care costs in retirement (not including nursing home home care)?",
  "answers" : [ {
    "answer" : "$60,000",
    "correctAnswer" : false
  }, {
    "answer" : "$140,000",
    "correctAnswer" : false
  }, {
    "answer" : "$220,000",
    "correctAnswer" : true
  }, {
    "answer" : "$450,000",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "According to Fidelity Benefits Consulting, a 65-year-old couple retiring in 2013 is estimated to spend $220,000 throughout retirement, to cover Medicare premiums, deductibles and coinsurance costs.",
  "hint" : "",
  "hintLink" : "http://www.aarp.org/work/retirement-planning/info-11-2013/plan-retirement-health-costs.html",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "When \"ballparking\" estimated health care costs in retirement, how close are most workers' estimates?",
  "answers" : [ {
    "answer" : "They’ll need 50 percent more than they think",
    "correctAnswer" : false
  }, {
    "answer" : "They’ll need twice as much",
    "correctAnswer" : true
  }, {
    "answer" : "They’ll need three times as much",
    "correctAnswer" : false
  }, {
    "answer" : "They’ll need more than four times as much",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "According to Fidelity, a recent poll of workers (ages 55-64) found that 48 percent of respondents think they will need only $50,000 to cover health care costs in retirement. In fact, a 65-year-old retiring this year is estimated to need $110,000 just to cover Medicare premiums, deductibles and coinsurance costs.",
  "hint" : "",
  "hintLink" : "http://www.aarp.org/work/retirement-planning/info-03-2013/retire-with-confidence.html",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "The average woman spends more on health care than the average man.",
  "answers" : [ {
    "answer" : "True",
    "correctAnswer" : true
  }, {
    "answer" : "False",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Because women tend to live longer than men, experts estimate that the typical woman will spend more for health care in retirement than the typical man.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "What percentage of their income do most retiree households spend on health care and Medicare costs?",
  "answers" : [ {
    "answer" : "5 percent",
    "correctAnswer" : false
  }, {
    "answer" : "10 percent",
    "correctAnswer" : false
  }, {
    "answer" : "15 percent",
    "correctAnswer" : true
  }, {
    "answer" : "20 percent",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Health care spending represents, on average, nearly 15 percent of what retiree households spend each year, according to the Kaiser Family Foundation. And for those 80 and older, average health care spending accounts for nearly 18 percent of household spending.",
  "hint" : "",
  "hintLink" : "http://www.aarp.org/health/medicare-insurance/info-12-2012/health-care-costs.html",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "When does Medicare eligibility begin?",
  "answers" : [ {
    "answer" : "At age 65 or older, as long as you worked for at least 10 years in Medicare-covered employment",
    "correctAnswer" : false
  }, {
    "answer" : "Two years after beginning disability benefits, regardless of your age",
    "correctAnswer" : false
  }, {
    "answer" : "If you have end-stage renal disease, regardless of your age",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years in Medicare-covered employment and you are 65 years or older and a citizen or permanent resident of the United States. If you aren’t yet 65, you might also qualify for coverage if you have a disability or end-stage renal disease (permanent kidney failure requiring dialysis or transplant).",
  "hint" : "",
  "hintLink" : "http://www.aarp.org/health/medicare-insurance/info-04-2011/medicare-eligibility.html",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Under the Affordable Care Act, Medicare plans must cover an annual wellness exam and personalized prevention plan at no cost to the patient.",
  "answers" : [ {
    "answer" : "True",
    "correctAnswer" : true
  }, {
    "answer" : "False",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The law provides certain free preventive services, such as annual wellness visits and personalized prevention plans for seniors on Medicare. By managing your health, you may save thousands in health care costs down the road.",
  "hint" : "",
  "hintLink" : "http://www.aarp.org/health/health-insurance/info-04-2013/how-affordable-care-act-helps-you.html",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
} ]

Quiz Progress

0 Correct

0 Incorrect