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Health Care Cost Concerns Crimp Retirement Plans

Even the affluent are “terrified” of the impact of health care costs on retirement — but most haven’t discussed that topic with an advisor.

According to an online survey conducted by Harris Poll for the Nationwide Retirement Institute of 801 Americans age 50 or older with at least $150,000 in household income (“affluent Boomers”):

• about two-thirds (62%) say they are “terrified” of what health care costs may do to their retirement plans;
• nearly three-quarters (72%) say one of their top fears in retirement is their health care costs going out of control; and
• more than one-quarter of employed affluent boomers (26%) now believe they will never retire.

More than two in five affluent boomers (45%) say they would delay their retirement if they had to buy their own health insurance, and about a quarter (27%) of parents say they would delay their retirement in order to keep their children on their employer-based health insurance plan.

Pre-retirees were more likely than last year to say they expect their biggest expense in retirement to be the cost of health care (51% versus 43%).
Despite those concerns, 77% say they have not discussed their health care costs during retirement with a professional financial advisor.