Retiring and Health Care in US – Only one in five have taken one or more steps to prepare

The overwhelming majority (86%) of baby boomers express concern about the  affordability of health care in retirement, but very few pre-retirees admit they have taken financial steps to prepare for health care costs in retirement, according to a study released today by Ameriprise Financial (NYSE: AMP). The Health, Wealth and RetirementSM study, which surveyed more than 1,000 employed baby boomers ages 50-64 who are preparing for retirement with at least $100,000 in investable assets, asked these individuals about their attitudes toward health, health care costs and the impact each may have in retirement.

When asked what they’ve done to prepare for funding healthcare costs in retirement, only one in five (19%) surveyed say they’ve taken one or more steps to prepare. One-fourth (26%) have reviewed their options but have taken no action and another two in five (40%) have thought about it but haven’t looked into it in detail. Unfortunately, 15% of respondents haven’t begun to consider how they will cover health care costs in retirement.

“Boomers understand that health care costs will be a significant expense in retirement, yet many haven’t planned – or simply don’t know how to plan – to fund these expenses,” said Pat O’Connell, executive vice president, Ameriprise Financial. “Fortunately, the national conversation around health care is prompting people to consider their health and the choices they make, as well as the need to build health care expenses into their retirement and long-term financial plan. Pre-retirees have an opportunity to translate this awareness into tangible steps to help prepare for expected and unexpected health care costs and protect the savings they’ve worked so hard to accumulate.”

Chosen excerpts by Job Market Monitor. Read the whole story at  Ameriprise Newsroom | News Releases.