Do You Discuss Health Care With Your Financial Advisor?
Knowing that health care is such a large cost driver in retirement, why do so few pre-retirees discuss health care with their advisors? A recent study from Nationwide Financial states that almost half of high-net worth Americans who are close to retirement say that they are “terrified” of what health care costs may do to their retirement plans. However, only 38% say that they have not discussed retirement health care costs with their advisors.
This survey also revealed that respondents who were 55 or older with household assets of $250,000 or more believed that Medicare will pay for 68% of their health care costs in retirement when it in fact covers only about 51%. Further, most respondents estimated their per-person cost of health care would be about $5,600 per year when it is truly about double that according to Fidelity Investment’s annual survey of retiree health care costs.
With such large gaps between personal expectations and documented evidence, many retirees will have some unfortunate financial surprises to deal with in their retirement years. Please make an effort to do your homework and to consult with an experienced advisor when formulating your retirement plan so you are not one of those unfortunate individuals.
Annuity Education | Find a Retirement Income Specialist