Nationwide Survey Highlights Healthcare Costs as Key Retirement Concern

A survey by the Nationwide Retirement Institute reveals that rising healthcare costs are a major concern for nearly three-quarters of American workers planning for retirement. About 73% identified healthcare expenses as a top worry, with 71% expressing significant anxiety over how these costs might impact their retirement savings. Despite this concern, a majority have not established clear plans to address anticipated healthcare expenses in retirement, with 66% unable to estimate future healthcare costs and 59% uncertain about budgeting for these expenses. The survey also highlights a knowledge gap regarding federal healthcare programs, such as Medicare, which currently serves over 69 million retirees in the U.S. On average, respondents answered fewer than half of a 16-question Medicare quiz correctly, and many were unaware or mistaken about coverage details, particularly relating to long-term care costs. This lack of understanding may contribute to inadequate financial planning and heightened anxiety about retirement healthcare needs. Financial professionals and retirement advisors emerge as key resources for improving retirement healthcare planning. Respondents who work with advisors report higher confidence in managing future healthcare costs. However, there remains a significant need for more comprehensive guidance, especially concerning Medicare enrollment and benefits. More than half of those receiving professional advice reported not having discussed Medicare filing strategies, while a large majority intend to seek such advice moving forward. Nationwide experts emphasize the importance of integrating healthcare cost planning into overall retirement strategies. Providing clients with clear information on budgeting for routine and out-of-pocket medical expenses and navigating Medicare eligibility can help protect retirement savings and improve financial security. This approach addresses not only expected costs but also prepares individuals for potential unforeseen medical expenditures. As healthcare expenses continue to rise, enhancing retirement planning education around healthcare costs and government programs like Medicare is critical for U.S. workers. Financial professionals have an opportunity to bridge this knowledge gap and support better-informed, proactive retirement planning. Building confidence through detailed discussions about healthcare financing may reduce anxiety and strengthen long-term financial outcomes for retirees.