Has anyone written a post about the cost of medical care in retirement? More specifically, the place in your budget for buying pharmaceuticals. If you are not fortunate enough to have a good civil service retirement package or a good corporate retirement package, the budget can really get dented. My wife is healthy enough to work. As long as she holds her job, her insurance covers her pharmaceutical costs. She is planning to cut back her hours to be a part timer. She can do that in this job, but she will loose her benefits. She has no choice because of her arthritis which is not getting better. Her pharmaceuticals cost almost $6000.00 per year. Planning for something like this is difficult. Ten years ago, when she was 55, we never dreamed we would have an expense like this.

Medicare is useless when it comes to pharmaceuticals. Medigap plans cover half the cost of $2500-$3000 if you are prepared to have your premium increase almost 50% to include extended pharmaceutical coverage.

If you are an optimist, and you are planning your retirement, try to consult with a pessimist.