Sales Tools

How to Help Overcome Concerns About Retirement Health Care Costs

Executive Summary

Affording health care costs is a concern for people of all ages as these costs are considered to be one of the larger expenses clients will face in retirement.

This is a valid concern. Health care costs in retirement can add up, even if you are healthy.

Top 5 Fears About Retirement

Source: 2016 PWC Employee Financial Wellness Survey
PWC’s Employee Financial Wellness Survey tracks the financial and retirement well-being of working U.S. adults nationwide. This year it incorporates the views of over 1,600 full-time employed adults representative of the U.S. population by age and gender. The margin of error is +/- 3%. Survey participants are these ages in 2016: 21 to 34 (Millennials*), 35 to 55 (Gen X) and 56 to 73 (Baby Boomers).

After age 65, Medicare covers about half of your expected health care expenses.1 Supplemental Medigap insurance can help cover the gap. But even with extra insurance, health care in retirement may be more costly than many expect.

Potential Health Care Premiums

$188

Monthly Medicare Part B and Part D premiums for those in the lowest income bracket2

+

$200

Estimated monthly Medigap insurance premium2 (average national monthly premium)

=

$388

Combined monthly costs2

Estimated Annual Cost2
per person

$4,656

Estimated Annual Cost2
per couple

$9,312

not including nursing home, out-of-pocket prescription drugs, copays, assisted living, or most home care costs

How the Health Care Dollar is Spent

Source: Centers for Medicare and Medicaid Services, National Health Expenditures 2014 Highlights Report

Tools to Help Your Clients

Health Care Costs Presentation

Health Care Costs Hard Card

Health Care Costs Positioning Statement

1 Centers for Medicare & Medicaid Services.

2 Assumes person (or couple) has less than $85,000 (or $170,000) in annual income in 2015 based on their tax returns and has average national monthly Medicare Part D coverage. Sources: Medicare.gov, Jester Financial Technologies.

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