Report says comparing CD rates, important for people aged 65 and above

A recent report by the Employee Benefit Research Institute found that among people aged 65 and above, comparing CD rates may be in their best interest. Such comparison becomes crucial in the face of growing medical expenses that the 65 year olds and above are expected to shoulder as they retire.

The EBRI said that though the issue is not only limited to those aged 65 and above, they are the ones most likely to be affected. This is due to the fact that their retirement dates may follow immediately and the reality of more medical requirements for their physical health conditions.

Americans saving for retirement may as well choose to save money on bank accounts that offer the most advantages in the future. This is why EBRI’s report recommends the following aspects for comparison: certificates of deposit, money market accounts, and savings accounts.

EBRI further added that retirees this year have paid medical expenses amounting to as high as $100, 000 over the course of their lifetime. Add to this the fact that that these senior citizens have been receiving the benefits or added values from their Medicare coverage. Despite the Medicare coverage, EBRI said that the retirees have been made to pay still higher than the average and are continuously expected to shoulder more costs.

Further data from EBRI reveals a disparity in the medical costs for males and females. Adult men who are retiring this year are expected to have at least $65,000 dollars they can spend for their medical expenses. Estimates show that male senior citizens will spend at least 50% of that amount for medical expenses, the rest of the amount they will need for their daily sustenance.

For the adult women on the other hand, EBRI shares data showing that female senior citizens need to pay higher medical bills at amounting to as much as $93,000. EBRI did not expound why medical services are more expensive for women, but instead, they reiterated the fact that both male and female retirees have to find different ways on how they can get money for their medical and daily expenditure. The report adds that by investing their money in CDs, senior citizens can earn higher interest while at the same time ensuring their earnings are safe. Since a new healthcare legislation is not yet in place for these 65 year olds and above, EBRI suggests that comparing bank rates may be a first step to help with the costs.