Most of us understand the vital role that personal savings plays in securing a comfortable lifestyle in retirement. The average retiree will be required to provide approximately 40% of the financial resources needed for retirement from personal savings (DMBA Thrift Plan, TIAA/CREF and IRA’s).
In the past, retirees have used personal savings to supplement benefits received from the Master Retirement Plan and Social Security. Personal savings were often used to pay for missions, travel, and for the purchase of other personal items such as home repairs and improvements, automobiles, etc. In today’s world, with soaring medical/dental costs, retirees are finding that more of their resources from personal savings are required to pay for medical/dental costs, including medical/dental premiums.
The examples below compare DMBA medical/dental premiums while employed to medical/dental premiums in retirement. The premiums quoted are for ManagedCare for the year 2007 and assume a minimum of 20 years of full-time BYU employment.*
| Employed | Retired | ||
| Deseret Choice/Family Coverage - Retirees Without Medicare | $229.80 | $525.20 | |
| Deseret Choice/Double Coverage - Retirees Without Medicare | $156.80 | $358.90 | |
| Deseret Choice/Double Coverage- Retirees With Medicare | $156.80 | $356.10 | |
| Deseret Choice/Single Coverage - Retiree With Medicare | $84.10 | $181.50 |
Retiree medical/dental premiums have increased 575% over the last ten years. As costs continue to increase in the future, retirees will need more money in their personal savings accounts to offset those rising costs.
Now is the time to prepare financially for your retirement. It has never been more important to have adequate personal savings for retirement.
For more information contact the Benefits Office, D-240 ASB, 422-4716.
* Premiums will vary depending upon the medical plan selected. Personnel with less than 20 years of service will pay an
additional amount for coverage.