[quote=SK in CV][quote=bearishgurl]Flyer, it doesn’t seem like you’re taking into account defined benefit pensions paid monthly to boomer-and-beyond households. The vast majority of the over-55 cohort that I’m acquainted with have at least one DB pension coming into the household. And about 3/4 of those households ALSO paid into Social Security (whether or not they are currently collecting any). With one or more DB pensions combined with SS paid to one or more persons of a household, certainly this is enough money for a 1-2 person household to live relatively comfortably and indefinitely …. especially if their primary residence is paid off.
I realize that most boomers came from families with 3-6 kids and that any inheritance from the last parent who died would likely be split up among the heirs which would account for smaller inheritances in a large portion of families (don’t know the percentage). This is assuming the last remaining parent didn’t use a lot of long term care or avail themselves of LT care on Medi-Cal in their final years (which would cause a MC lien to be placed on any real property they owned).[/quote]
Perfect example of why anecdotes are not the same as data. For the last 35 years, fewer than 30% of workers were covered by DB plans. Even among those with some kind of plan, fewer than half had DB plans, and those numbers are much lower today than they were 35 years ago. Today, that number is less than 10%.
There is no period of time over the last 60 years when average families had 3-6 kids. And we have to go back 100 years since more families had more than 2 or more children than fewer than 2.
The people that surround you are not representative of the rest of the population.[/quote]
SK, are you factoring in military retirees? Military pensions are akin to DB pensions and I included them in my assumptions. Also, I am referring to about 60% seniors (those currently 70 and older) and 40% boomers (those currently 51 to 69 yrs old who are already “retired.”). The bulk of senior households DID and DO HAVE at least one DB pension coming in, incl military retirements. The bulk of those collecting DB pensions also have guaranteed health coverage for life or a guaranteed healthcare allowance for life or both (single or couple).
It is the generations UNDER the boomers (almost all still working) who have lost DB pensions or healthcare coverage/allowance in retirement. Most of these changes were made in all levels of government ~2001-2002. At that time, the boomer cohort was already long-vested and most of the (now) senior cohort was already retired.
Some areas of SD County are flush with well-established military and govm’t-retiree households (from all levels of govm’t) and my area is one of those. It most certainly IS HIGHLY REPRESENTATIVE of San Diego County retiree demographics residing just ~6 miles from the main SD NAVAL BASE (32nd St) privileges such as commissary, exchange, gas and auto repair, etc and just slightly further from military privileges at NASNI Coronado, and, to a lesser extent, Ream Field (IB). Likewise, military retiree-residents are in abundance surrounding Miramar MCAS and other large bases elsewhere in the state. There are also many retired sworn staff (collecting more generous “Class C” DB pensions) around here, who have guaranteed health coverage for life beginning from date of retirement, as part of their pension pkgs. Military retirees (from active duty, NOT reserve) automatically get Tricare Standard (similar to a PPO) for themselves and their immediate families from their retirement date onwards (retired reservists receive the coverage at age 60). Most younger military retirees use Tricare Standard as secondary coverage (to their coverage from employment) because it only covers 75% of its allowable charge (or 80% if the provider is a “Tricare Extra” provider or “in network”). Tricare Standard has a low $150 deductible per individual per year for a max annual deductible of $300 per family. If a military retiree or their family member must rely on Tricare Standard, a private Tricare supplement is not too costly (~$25 – $75 mo, depending on age).
A military retiree and/or their family members may also sign up for Tricare Prime (an “HMO”), for a low annual enrollment fee and low copays but a beneficiary cannot self-select specialists with this plan:
Upon eligibility for Medicare, a military retiree (and their spouse, if/when eligible for MC) are automatically covered by “Tricare for Life” for their MC Part B & D coverage. TFL beneficiaries DO NOT PAY A DIME for healthcare coverage (as long as they use “network” providers, which, in SD, includes the entire Scripps Health system)! They also get almost all their prescriptions free from the military, mailed free of charge to their homes.
There are also Indian Health Services (IHS) eligible individuals (and their families) and VA-eligible individuals who never pay a dime out of pocket for healthcare. In addition, legally disabled individuals under the age of 65 are eligible for Medi-Cal/Medicaid, AND, in some cases, Medicare. And don’t forget PacBell, AT&T and utility retirees!
You’re skipping over a boatload of people, here, SK.
And yes, shoveler, I do know seniors on the SCAN Medicare Advantage program. Their premiums are lowish and they pay NOTHING out of pocket but the problem I have seen with this program is that the patient cannot choose their providers, rehab centers or skilled nursing facilities. SCAN chooses them for them. And they must go through their PCP for any referrals to a specialist. They can’t self-select any providers. For those reasons, it’s not the best Medicare supplement out there, IMO, despite its cheaper monthly premium.
I’ve already decided that I’m going with a MC Part B/D program (NOT a MC Advantage Plan) and will go with United Health or Aetna carriers (or Cigna if I leave the state) plus their brand-name drug options for Part D when my time comes to sign up for MC. Like many thousands of people in this county, I will have an even more generous healthcare allowance upon eligibility for MC. I’ve helped a few seniors get off their el-cheapo absolutely useless, pay-nothing, fly-by-night “MC Advantage programs” during the fall and sign up for part B and D coverage. I highly recommend Part B & D coverage over Advantage Plans like SCAN, especially if you will retire in an area more than 30 mins drive from a hospital. Again, you pay for what you get in this life.
I just talked with two local govm’t workers over the weekend who will retire from SD’s (City’s) DROP program at the age of 55. The City’s DROP was one of the most generous retirement programs in the nation (now taken off the table) and these individuals are currently only 52 and 54 years old! Not only are their houses paid off, but they will each retire with 29 and 30 years service respectively with all of the above and more benefits and perks and are essentially set for life!
I don’t see a healthcare crisis at all (except maybe with the 10-25 yo set due to the childhood obesity epidemic). Am I missing something here??
As to long-term care, I do see an issue here as this can easily cost $5-$10K month in SD County, depending on facility. I don’t know anyone who has long-term care insurance and yes, the cost of LT care could ostensibly “clean someone out,” assuming they couldn’t move in with kids and/or didn’t quitclaim any CA real property they own to kids/heirs FAR in advance (8+ yrs?) of a perceived need to avail themselves of LT care on Medi-Cal (which would likely be a “substandard” facility, anyway). They would also have to spend down the bulk of their liquid assets LONG before using Medi-Cal to cover long-term care. It’s going to be interesting to see how all this pans out for the “heirs” of those who go into LT care. And yes, I agree with FIH’s post. The US will have to import more nurses if our colleges aren’t cranking out enough of them at all levels to address this future need.
All but one of the boomers I know who lost both parents had to split their “inheritance” with 2 or more siblings (and/or the heirs of a deceased sibling). SK, you’re a boomer who grew up in SD, no? How many siblings do/did you have? Are both of your parents still alive?
