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 trends in the health care industry 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 their clients better understand the potential impact of those trends on retirement planning.
Working with a financial professional may help improve financial confidence. Only 36% of those who worked with a financial professional were concerned about the cost of health care, as opposed to 43% of those who were not working with one.1
Health care innovation may reduce retirees’ health care costs as well as change the
way they receive care.
Artificial intelligence (AI) and a move to a value-based
health care model will put more emphasis on prevention of expensive chronic diseases, which could help retirees spend less.
Our white paper explores the ways future retirees may benefit from the changes, such as reduced hospitalizations and lower health care costs due to earlier detection of chronic diseases.
The use of AI has the potential to not only improve doctors’ ability to better detect diseases through the identification of patterns within large sets of data,2,3 but it may also help retirees avoid expensive hospital stays or rehabilitation at a skilled nursing facility.4
The costs of different types of care increased dramatically between 2004 and 2020, including a 79.2% increase in the cost of assisted living facilities.5 Prices for various types of care are projected to increase between 20% and 46.9% between now and 2030.6
Retirees have several options for additional care as they get older, but the cost is increasing.5
Aging at home may become easier thanks to telemedicine and technology, which can minimize the need for retirees to have 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 their clients prepare for rising health care expenses.
The way people view retirement is changing, as more people consider staying in the workforce longer.7 Working deeper into retirement age may be even more of a possibility 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 longer into retirement age is expected to increase from where it was in 2019, with 33.2% of those age 65 – 74 and 11.8% of those age 75 and older expected to still be employed in 2029.8