The Average Retiree Spends 30% of Their Social Security Income on Health Care

by Christy Bieber | Originally posted on USA Today

If you're anticipating that Social Security benefits are going to help cover most of your expenses as a retiree, you're in for a big disappointment.

While your retirement income from the Social Security Administration will undoubtedly be helpful in supporting you in your later years, it's nowhere near enough to provide for everything you need.

In fact, a troubling new report shows it's possible almost a third of your entire benefits check will be eaten up by one key expense you face as a senior – if you receive close to the average Social Security benefit.

This huge cost can leave you with little left in your Social Security check

According to an AARP report released in December 2021, retirees with traditional Medicare ended up spending an average of $6,168 per year on covering the costs of insurance premiums and medical services. 

Considering that the average Social Security benefit in 2022 is just $1,657 per month – or $19,884 per year – a retiree with a typical benefit and average medical expenses could end up spending just over 31% of their entire Social Security check on paying out-of-pocket expenses associated with their medical needs. 

This can come as a huge shock to many seniors, especially as many people anticipate that the Medicare insurance the government offers will take care of most of their health needs. It's also a surprise that can lead to financial devastation if you weren't prepared to cover this big cost and were counting on Social Security benefits to help you pay other bills. 

What can current retirees do to cope with this unpleasant Medicare surprise? 

Unfortunately, if you're already in retirement and are faced with medical expenditures that are higher than you anticipated, you don't have a lot of great options. It's too late to go back in time and save more for medical services as a senior.