As health care costs in the United States continue to rise, and inflation remains stubborn, many Americans are losing confidence in their ability to afford their health expenses and maintain their physical and financial wellbeing in retirement, according to the annual Nationwide Retirement Institute® Health Care Cost in Retirement survey, released today.
More than half of respondents (59%) lack confidence in their ability to pay for health care costs as they age, and 57% worry about their ability to pay for caregiving for their partner/spouse.
The study also found that financial planning challenges may be exacerbated by the potential for medical advancements brought on by artificial intelligence (AI) to extend lifespans. One in four Americans (26%) expect AI advancements in health care to add over a decade to their lifespan. Of those, Gen Z expect AI to add an average of 15 years to their life, millennials 12 years, Gen Xers 8 years and boomers 9 years. * This signals Americans could be paying for health care costs for significantly longer than they are doing today, and they need a plan that accounts for that.
“Advances in AI and health care technology in general are moving faster than ever and may help treat many of today’s chronic diseases, as well as other health issues,” said Kristi Rodriguez, senior vice president of the Nationwide Retirement Institute. “While this is good news, longevity requires more planning. That is why it is so important to consult with a financial professional to create a plan that prioritizes your health care needs now and for a retirement that could be longer than anticipated.”
Americans are making tradeoffs to manage health care expenses
As Americans eye a future that could be longer than anticipated, today’s economic uncertainty is putting a strain on their finances and causing them to make tough decisions about their medical care that could have significant long-term implications.
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Nearly 1 in 5 (18%) adults have…
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