Health care expenses are the
X factor of retirement planning.
People who are planning for retirement often cite health care expenses as their number one financial concern.1
New health care industry trends are changing how people will receive care in retirement – and how much they may need to pay for it.
Our white paper analyzes some of the most important trends to help financial professionals and clients better understand the potential impact of those trends on retirement planning.
About half of U.S. adults express concern about being able to afford health care, and one in four say these costs resulted in them putting off care they needed in the past year.1 Working with a financial professional to develop a plan for meeting health care needs could help improve financial confidence.
Health care and technology trends may reduce retirees’ health care costs and
change how they receive care.
Innovations in health care, such as artificial intelligence (AI), and a move to a value-based health care model will put more emphasis on the prevention of expensive chronic diseases, which could help retirees spend less.
Our white paper explores the ways future retirees may benefit from these changes, through reduced hospitalizations and lower health care costs due to earlier detection of chronic diseases, for example.
The use of AI has the potential to advance health care operations by improving efficiencies in a multitude of processes, including administrative tasks and even fraud prevention. AI interfaces can be used for many of these practices, relieving medical staff to focus on direct interactions with patients, prioritizing effective communication.2
The costs of different types of care increased dramatically between 2004 and 2021, including a rise in costs for home health aides, nursing homes, and assisted living facilities.3 Supply and demand continues to be the primary reason that prices for various types of care are projected to increase between now and 2030.3
Retirees have several options for additional care as they get older, but the costs are increasing.3
Aging at home is a health care trend that may become easier thanks to telemedicine and other technologies that can minimize the need for retirees to travel to medical appointments and make it safer for people to live alone.
For those who prefer a community setting, luxury options at continuing care retirement communities may be appealing because of their amenities, but those options come at a rising price. Learn more about how changes in health care costs can affect retirement planning in our white paper.
There are several options to help financial professionals and clients prepare for rising health care expenses.
The way people view retirement is changing, as more people consider staying in the workforce longer.4 Working past retirement age may become more common as remote work and the gig economy become more prevalent.
Saving more money by working longer is one way people may be able to be financially prepared for the cost of health care in retirement. Learn more about the future of paying for health care in our white paper.
The percentage of Americans working past retirement age is expected to increase from where it was in 2022, with 29.9% of those ages 65-74 and 9.9% of those ages 75 and older expected to still be employed in 2032.5