A recent study conducted by the Employee Benefit Research Institute (EBRI) found that retirees will need to have hundreds of thousands of dollars in savings to cover Medicare costs. Such costs include premiums, deductibles and prescription drug expenses—essentially any costs that could be out-of-pocket for Medicare beneficiaries.

Around half of elderly Americans are unable to afford essential expenses, according to the University of Massachusetts-Boston’s Elder Index. It is estimated that 54% of single older women and 45% of single older men are classified as poor under federal poverty standards.