Pre-Retirees ‘Terrified’ Of Health Care Costs
Nationwide Financial announced 61 percent of pre-retirees now say they are "terrified" of what health care costs may do to their retirement plans.
In a release, the Company noted that the annual survey reveals the number of affluent pre-retirees jumped 30 percent from the fewer than half that used the word "terrified" last year to describe their concerns about paying for health care costs in retirement.
The Company said three quarters of pre-retirees say their top fear in retirement is their health care costs spinning out of control. Sixty-four percent say they have not discussed their retirement plans at all with a financial advisor. Of those who have talked with an advisor, 22 percent discussed health care costs in retirement not covered by
"Whether it is the economy, concerns about the implementation of the Affordable Care Act or skyrocketing health care costs, our survey shows America's workers are increasingly concerned about how they will fund their health care costs in retirement," said
According to the survey, 26 percent do not expect to retire. That is up from 22 percent in 2012. Women are twice more likely than men to think they will never retire (36 percent vs. 18 percent). Two in five boomers also say they will delay their retirement if they had to buy their own health insurance. One in four say they will delay their retirement in order to keep their adult children on their employer-based health insurance plan.
When asked to estimate how much they anticipate spending each year on out-of-pocket health care costs in retirement, pre-retirees say on average
Nearly two in three wish they understood
Americans who plan to enroll in
"Boomers can't count on the Affordable Care Act or
Nationwide Financial has enhanced its Personalized Health Care Assessment program and now bases its calculations on the average cost of a Silver Plan in the Affordable Care Act exchanges in their state. The program also uses proprietary health risk analysis and up- to-date actuarial cost data such as personal health and lifestyle information, health care costs, and medical coverage to provide a meaningful, personalized cost estimate that will help clients plan for medical expenses.
"It's much easier to have these difficult conversations when, instead of guessing, advisors can use a tool to provide a fact- based cost estimate based on their clients' health risk and lifestyle," McGarry said. "The assessment enables an advisor to take clients who are terrified about health care costs in retirement and turn them into someone who is confident."
The 2013 Health Care and Long-term Care Costs Study was conducted online within the U.S. by
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