Retirement healthcare costs a major concern for many

The poll also found that there is a significant disconnect between what pre-retirees view as a manageable increase in healthcare costs and what is probably going to happen over the next several years. 

When asked what the highest level of annual healthcare cost increases would be considered manageable for them in the long-term, 68 percent of pre-retirees said that a 1, 3 or 5 percent increase in annual costs would be manageable. However, estimates earlier this month from the Department of Health and Human Services anticipate the average increase in healthcare costs to be 6.3 percent annually, until 2019.   

Of those affected by a spike in healthcare costs, one-fourth said the increase will force them to delay retirement. Twenty-six percent are concerned they will be unable to afford health insurance in retirement. 

Findings from the SOA survey also revealed that outliving one’s assets (A.K.A., longevity risk) when no longer working is a top concern for 28 percent of pre-retirees. 

Besides having enough savings to live on after retiring, nearly one in five pre-retirees are concerned that they will not be able to cover the cost of long-term care, if needed. 

The SOA findings are based on the opinions of 1,020 respondents between the ages of 50-64. Information on the survey can be found at www.soa.org.