healthcare costs in retirement consumer study – february 2012 nfm-10454ao.1

Healthcare Costs in RetirementConsumer Study – February 2012 NFM-10454AO.1

Methodology

• The 2012 Healthcare Spending Report was conducted online within the United States by Harris Interactive on behalf of Nationwide between January 3 and January 19, 2011. The respondents comprised of 625 adults ages 55+ having $250,000 or more in household assets who plan to retire by 2020 and 625 retired adults ages 65+ having $250,000 or more in household assets.

• Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

• Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. Because the sample is based on those who were invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated.

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Report Notes

• The following terms are used throughout the report and defined as follows:– “High net worth individuals”- Individuals ages 55+ having $250,000 or more in household

assets.– “Soon to be retired”- Individuals ages 55+ having $250,000 or more in household assets who

plan to retire by 2020.– “Retired”- Individuals ages 65+ having $250,000 or more in household assets who are

currently retired.

• Responses may not add up to 100% due to weighting, computer rounding or the acceptance of multiple responses.

• An asterisk (*) represents a value of less than 1% but greater than 0% and a dash (-) represents a value of 0%.

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Medicare Coverage- Plan to Enroll

Base: Retired (n=625), Soon to be retired (n=625)Q800: Are you currently enrolled in Medicare?Base: Plan to Enroll in Medicare Soon to be retired (n=481)Q805: When you enroll in Medicare, what percentage of your annual health care costs do you expect Medicare will cover?Q807: Which of the following best describes how you arrived at this percentage?

Significantly higher than retired/soon to be retired

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Retirement Costs and Expenses

Base: Retired (n=625), Soon to be retired (n=625)Q810: How much [do you anticipate/are you] spending each year on health care during your retirement years for things like premiums, copayments, deductibles, etc.?Q815: Have you estimated how much income in retirement you will have from things like Social Security payments, retirement accounts (401k, IRA, etc.), or pension, annuities or insurance, stocks, employment (full or part-time)?Q820: What [do you expect to be/is] your biggest expense throughout retirement?


Retired:4083.6Soon to be retired:5621.1

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Discussions with Financial Advisors or Consultants

Base: Retired (n=625), Soon to be retired (n=625)Q900: Have you discussed your retirement with a financial advisor or consultant?Base: Discussed Retirement with a Financial Advisor or Consultant Retired (n=434), Soon to be retired (n=388)Q905: Which of the following, if any, have you discussed with a financial advisor or consultant. Please select all that apply.

Retired Soon to be retiredHow your investable assets will be tapped for income over the next 5, 10, 15 years

How much you can safely withdraw to make sure your savings last throughout your

retirementTips for getting the most out of your

retirement funds

The current state of the economy

A written plan of how to invest your retirement savings

How best to ensure your loved ones are provided for

The role Medicare will play in your retirement

Information about your health, and estimating your health care costs in

retirementHow much you should expect to pay in health care costs apart from Medicare

How to cover travel expenses

Other

I don't know


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Plans for Future Financial Advisor Discussions

A written plan of how to invest your retirement savings

How best to ensure your loved ones are provided for

How much you can safely withdraw to make sure your savings last throughout your

retirementHow your investable assets will be tapped for income over the next 5, 10, 15 years

Tips for getting the most out of your retirement funds

How to cover travel expenses

The current state of the economy

How much you should expect to pay in health care costs apart from Medicare

Information about your health, and estimating your health care costs in

retirement

The role Medicare will play in your retirement

Other

Retired Soon to be retired

BASE: Discussed at Least One of Listed Items Retired (n=434); Soon to be retired (n=373)Q910 How helpful was your financial advisor or consultant when discussing the following?BASE: Discussed Retirement with a Financial Advisor or Consultant Retired (n=403); Soon to be retired (n=344)Q915 Do you have any plans to discuss health care costs, beyond those covered by Medicare in retirement, with your financial advisor or consultant?BASE: Discussed Retirement with a Financial Advisor or Consultant Retired (n=434); Soon to be retired (n=388)Q920: Do you feel your advisor is well equipped to discuss your health care costs in retirement?

% Very helpful/Helpful



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Choosing A Financial Advisor

Base: Discussed Retirement with a Financial Advisor or Consultant Retired (n=434), Soon to be retired (n=388)Q930: Are you planning to, or have you switched, financial advisors as you plan for retirement?Base: Plan to or Have Switched Financial Advisors Retired (n=54), Soon to be retired (n=54)Q935: Would you be more likely to stay with your current advisor if they could help you plan for covering health care costs in retirement?Q940: Would you be more likely to stay with your current advisor if they could discuss the role of Medicare in your retirement with you?

% Yes


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21%

51%

How confident are you in your knowledge of Medicare

coverage?

How important is educating yourself on Medicare

coverage when planning for retirement?

Knowledge and Importance of Medicare Coverage

Base: Retired (n=625); Soon to be retired (n=625)Q1010: How confident are you in your knowledge of Medicare coverage?Q1015: How important is educating yourself on Medicare coverage when planning for retirement?


51%

44%


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I will not have enough money to pay for health

care expenses in retirement.

Retired

Soon to be retired

One of my top fears in retirement is my health care costs going out of

control.

Retired

Soon to be retired

BASE: Retired (n=625); Soon to be retired (n=625)Q1025 How much do you agree or disagree with the following statements?

■ Somewhat agree ■ Strongly agree ■ Strongly disagree ■ Somewhat disagree


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I’m fearful of bankruptcy because of the cost of

health care in my retirement.

Retired

Soon to be retired

I’m terrified of what health care costs may do to my

retirement plans.

Retired

Soon to be retired




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Most financial advisors are not equipped to discuss retirement health care costs with their clients.

Retired

Soon to be retired

I wish I understood Medicare coverage better.

Retired

Soon to be retired




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healthcare costs in retirement consumer study – february 2012 nfm-10454ao.1

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