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Chapter 5. Developing Your Retirement Pl... > Using Software to Crunch Your Number... - Pg. 62

Developing Your Retirement Plan · Have enough money to pay post-retirement medical expenses. 62 Why isn't John saving 9 percent now? You probably guessed it. He didn't know he needed to. If he hadn't taken the time to work through the numbers, he would continue thinking he's saving enough, only to find out 26 years from now that he's short by about $700,000 dollars. Fast forward for a moment to John's retirement ... What do you think his options are at age 62 when he finds out that he needs an extra $700K to retire? For What It's Worth The big secret in America today is retiree medical . It's a good idea to save for this expense for two very important reasons: Medical costs will increase every year between now and retirement, and inflation looks like it will be higher for medical expenses than for other products and services. You may feel fortunate because your employer has a retiree medical benefit. But consider two questions: Do you have any guarantee it will still be there when you retire? Are you sure you'll be working for your current employer when you retire? For all these reasons, you should include retiree medical expenses on your "How much money will I need?" worksheet.