Retiree health benefits
As of 2021, 89 percent of large United States firms offered retiree health benefits to early-age retirees. In that same year, 74 percent of firms with 25 to 49 employees offered their employees health benefits. Firms offering health benefits also differed based on industry. Some 69 percent of large firms in the state or local governments offered retiree health benefits, while, ironically, only 12 percent of health care firms offered retiree health benefits, one of the lowest figures among U.S. industries.
For those under 65 years of age, a former employee pays around 550 U.S. dollars per month in premiums to the former employer. Health benefits in retirement are most common in the public sector but there may also be a reduction of benefits offered in this sector. The number of large firms offering benefits has decreased. For those 65 and older, Medicare coverage provides health care insurance. However, for retirees under 65, health insurance must be paid by the individual.