Retirement: Vacations, hobbies and huge medical costs

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If you’re nearing retirement, make plans for vacations and hobbies. But set aside plenty of money for medical costs.

Even though the Obama healthcare overhaul will reduce expenses for many people in their golden years, retirees will still have to shell out large sums for medical care, according to a report released Tuesday.

Men retiring this year at age 65 will need anywhere from $65,000 to $109,000 to cover insurance premiums and out-of-pocket expenses, according to the nonpartisan Employee Benefit Research Institute.

And that’s only if they want a 50% chance of having enough money. For 90% odds, the average man would need $124,000 to $211,000, the institute’s report says.

For women, who tend to live longer, 50% odds would cost $88,000 to $146,000. A 90% chance would range from $143,000 to $242,000.

These are estimates for people who are eligible for Medicare. Anyone retiring before age 65 would need even more.

Medical expenses would be higher if not for the federal healthcare overhaul, which will reduce outlays for people with high prescription-drug costs, according to the report. Instead of absorbing 100% of prescription expenses in the so-called doughnut hole in Medicare Part D, the new law reduces that to 25% through 2020, the report said.

-- Walter Hamilton