The older population living in America has always been insecure with regards to medical expenses in retirement. However, did you know that most of them don’t discuss this retirement issue?
According to a recent survey conducted by the Nationwide Retirement Institute, about 45% of the participants claimed that they haven’t talked about medical expenses with anybody. And the fact is that healthcare costs could add up to be significantly high in retirement.
Older people concerned about their privacy
Those who are already retired and those who are nearing retirement tend to disregard this conversation for various reasons. The number one reason given by most of them is ‘privacy’. Nearly 48 percent of the surveyed individuals said that they do not like consulting a financial advisor regarding medical costs since it is their “personal issue”.
At the same time, more than 50 percent of the survey participants (who had children) did not want to bring up the issue regarding medical expenses for the simple reason that it would cause their children to worry about them.
Reports suggest that as of 2016, a retired old couple could expect to shell out an average of 260,000 dollars for medical expenditure over a period of 20 years. This excludes the cost of the nursing home (report by Fidelity). This is nearly a 6% increase from the previous year.
Not planning: A cause for concern
Planning for healthcare becomes challenging if you are unable to estimate the approximate amount you would need for your old age. Nearly 60 percent of the surveyed people had no idea about the amount of money they could spend on health care annually in retirement (as a couple). Similarly, about 3/4th of the people were not sure about the long-term care expenditure.
The reluctance among older Americans to talk about the topic of retirement medical expenses is worrying. This automatically means that they aren’t ready to pay for any kind of higher costs which may arise in the future. Also, family members are being left out of the discussion even when they are the primary support for the elderly.
According to Nationwide Retirement Plans president, John Carter, the topic of medical expenses needs to be brought up in family discussions. This is extremely critical since no action will leave you with absolutely zero control over your old age health and well-being. The elderly need to come out of their shell and be more receptive to proper health aid in retirement.