The cost of health care is a leading concern for U.S. retirees and U.S. consumers who are nearing retirement age.
The Society of Actuaries, Schaumburg, Ill., has published data supporting that conclusion in a summary of results from a survey of 801 retirees and near retirees ages 45 to 80.
Researchers at Mathew Greenwald & Associates Inc., Washington, and the Employee Benefit Research Institute, Washington, organized the survey.
About 52% of the retirees who participated said they are very or somewhat concerned about having enough money to pay for extended care at home or in a nursing home, and 51% said they are very or somewhat concerned about having enough money to pay for adequate health care.
Among pre-retirees, 63% are concerned about paying for long term care, and 69% are concerned about paying for adequate health care.
But only 17% of pre-retirees and 28% of retirees who participated said they have bought LTC insurance, and only 23% of the pre-retirees and 9% of the retirees said they intend to buy LTC insurance in the future, researchers report.
About 16% of pre-retirees and a third of the retirees said they are saving for large health care and LTC expenses.
Participants expressed more concern about inflation than about outliving savings.
About 76% of the pre-retirees and 67% of the retirees said inflation will have a great impact or some impact on their retirement needs.
Only 56% of the pre-retirees and 45% of the retirees said they worry about the risk of depleting all of their savings.
Only 32% of the pre-retirees and 25% of the retirees said they have bought an annuity or chosen a lifetime income option from an employer retirement plan to ensure guaranteed income for life, researchers report.
A copy of the study is available here.