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According to the Nationwide Retirement Institute Health Care Costs in Retirement survey, many Americans aren’t confident in their ability to pay for health costs as they age. Over half of respondents said they would be unable to pay off an unexpected $5,000 health care expense and many also worry about paying for caregiving expenses for their spouses. In response, many Americans are downgrading their health insurance to plans with lower premiums.
One out of five adults postponed or delayed health care in the past 12 months to combat rising medical prices and inflation. Additionally, 3 out of 5 respondents chose or would choose a health policy with a lower premium but higher deductible, because it has a lower monthly premium.
The survey also showed a gap in financial knowledge and planning. Many with medical debt couldn’t estimate how much debt they had. Most adults didn’t have a written financial plan that included how to pay for health care costs related to chronic conditions in retirement. Over half of retirees regretted not taking care of themselves better to save on health care cost in the future.
Planning for retirement can often cause anxiety and stress among employees. However, employers who take the initiative to alleviate their employees' financial concerns may see an improvement in their workforce's overall health, productivity, and satisfaction. One effective strategy that employers can implement is educating their employees about the importance of creating a comprehensive financial plan, which includes utilizing health savings accounts to cover healthcare expenses during retirement. By empowering employees to manage their finances wisely, this approach can help to reduce financial stress and prevent any negative impact on workplace performance. Download the bulletin for more details.