Sorry. Very few people retiring have net assets of $300k. Maybe 7% of the population. Average, from an old SSA report, have about $25k. That will not provide a significant income. Even if someone had $300k invested, they could count on an income of $12k a year from that investment. (at that rate, the 300k will be gone in about 25 years.) That's a $1000 a month before taxes. Assume a 15% tax on investment money (for now) and that leaves 850 a month. Add 1200 a month (an average SSA payment) and that's 2050 a month - more conservative than what I used above.
Medical estimates for that 70 old year is he will spend 284000 dollars on medical expenses before he dies. That eats up that 300k one way or the other - before one dies, or after the government gets back the money they spent via Medicare from your estate. If you lave a surviving spouse, the government only has to leave her $1600 in savings. I didn't drop a zero in that number. I also added living expenses from my retirement budget to demonstrate That 2050 a month will get eaten up pretty quickly on basics., even assuming no mortgage, no car payment, and no financial crisis.
Long term health insurance, current rate about $290month per person, will create a savings the government cannot touch. It will help save a stock of money for a surviving spouse. DWand I are 57 - if we paid 580 a month, we would expect to build about 350k in that health account. That's protected from taxes after we die. If you're not married and don't want to leave money for kinds, it doesn't matter much. Once you die, if Medicare paid for long term care, they would take the money in your estate for reimbursement.
A person owning a home can live on that money, the 2050 a month, but he won't have anything to pay for grandkids college, as you suggested. He'd better save what he could for emergencies that will happen
Sorry I got verbose - a nasty habit of mine.
