June 27, 2012
--- Despite the rising cost of health care, many
retirees are not concerned about paying for it. ---
According to a Nationwide Financial
survey, nine in 10 retirees with at least $250,000 in household assets are not
concerned about paying for their future health care costs beyond what Medicare
covers.
Ninety-three percent of retired
Americans say they are at least somewhat confident they can pay for their
future health care costs, yet 46% of Baby Boomers nearing retirement with the
same amount of assets say they are “terrified” of health care costs.
“The good news is we’re not seeing
the panic that many Boomers nearing retirement are having, but we hope this
isn’t over-confidence that could lead to a lack of preparedness down the road,”
said John Carter, president of Nationwide Financial Distributors Inc., a
subsidiary of Nationwide Financial. “For many of the retirees we surveyed, most
of their health care costs have yet to come.”
Carter said despite retirees’
confidence in paying for health care costs, Boomers should not think it will be
as easy when they retire. “Many Boomers can expect a very different retirement
than that of their parents,” he said. “In addition to higher health care costs and
longer life expectancies, Boomers likely won’t have pensions or employer-paid
health care, and realistically they’ll need to be prepared to pay for their own
health care costs in retirement.”