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.