The frequency of withdrawals prevents HSA account holders from building a meaningful balance to use for health care expenses in retirement, and individuals are unlikely to allocate their assets to investment products if their primary goal is to fund short-term medical expenses, Cerulli says.
Tag: health care costs in retirement
Nearly all of those who work with an adviser feel they have prepared themselves well for estimating their monthly income needs in retirement, Voya Financial learned in a survey.
At the extreme, EBRI estimates, out-of-pocket costs could reach $399,000 or more.
Vanguard engaged Mercer Health and Benefits to develop a new model to forecast health care costs for U.S. retirees; the effort has resulted in a number of pragmatic recommendations for individuals and employers.
Nearly two-thirds of advisers say their clients expect advice on health care costs in retirement, and 34% say their clients would likely leave them if they didn't help them estimate and plan for out of pocket health care costs in retirement.
Vanguard has issued a new framework, jointly developed with Mercer, that helps pre-retirees and retirees with planning for annual health care costs and long-term care expenses in retirement.
Yet nearly six in 10 say saving for long-term care is a financial priority
Only 41% of consumers surveyed understand what long-term health care expenses will be in retirement, and only one-third are confident they are saving at an appropriate rate to cover long-term health care needs.