The projected cost of health care for the average couple retiring today is up 30% from 10 years ago, according to new data shared by Fidelity, underscoring the need to muster more holistic financial planning resources for workers and retirees.
Those who have a health savings account are more certain about how they will cover future health care costs.
However, they are worried about health care costs.
In addition to decreasing savings to retirement plans, one-third of employees say they have used up all or most of their savings or have increased their credit card debt due to health care costs, a survey finds.
A new “Cost of Long-Term Care” analysis published by Moll Law Group underscores the fundamental difficulty of planning for the health care unknowns faced by all retirement savers.
“Although budget pressures have put limits on some reforms and the Senate outlook this year is dim, the proposed changes indicate the direction that many Republicans and more than a few Democrats would like to take,” writes Tracy Watts, Mercer’s leader on health care reform.
Paying off debt is their second greatest fear, Franklin Templeton found in a survey.
This is up 2% from last year—and 75% from 2002, when Fidelity began estimating health care costs in retirement.
Although some retirees face catastrophic health care cost in retirement, EBRI found that most don't.
Of the 48% who say their health care costs have increased, more than one-quarter have decreased their retirement plan contributions.
But, employees younger than 25 and older than 65 are more likely to say they try to save/invest their HSA funds, a survey finds.
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.