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efficiency wrote:
I was just thinking the other day that one drawback to companies offering 401(k) instead of pensions is that there is no retirement paid medical insurance which is a huge expense for retirees.
So I went to the Fool Insurance center to see if they had any information on Medical Insurance in Retirement and I found none. Then today, I just read on article from the front page of the Fool about retirement and the last paragraph directed readers to the Insurance Center to find out about the costs of medical insurance in retirement.
Again...I found no information there. Am I missing something?


AFAIK, retiree health benefits are always a separate entity from pension benefits and are a separate offering (or not offered), regardless of pension payout. In other words, retiree health benefits are not automatic because one has a pension. I think you're trying to combine two different issues.

The advantage, in this case, of a defined benefit plan over a defined contribution plan is just that -- a defined benefit. You'll know exactly how much money you'll be receiving. (This, of course, is assuming the pension is not dismantled nor goes bankrupt, but I believe there are legal protections for those scenaria.)

In any case, I see your difficulty in finding information on TMF about health insurance for retirees. Perhaps you could post your questions on these TMF message boards:
-- Retire Early Home Page
-- Retired Fools
-- and perhaps even Retirement Investing

--L
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