Without your health, you have nothing.
It’s cliché because it’s true, as retirees can attest, according to new research from MassMutual.
In its Retirement Income Study, MassMutual learned that retirees are much more concerned about health woes than about the amount of money they’ve saved in a 401k or other retirement account—especially compared to pre-retirees.
The vast majority of retirees actually feel good about their retirement income. More than 90 percent are confident they’ve saved enough to last the duration of their retirement.
However, data show only 56 percent of pre-retirees believe the same.
Those who have yet to retire are preoccupied with money worries on a variety of retirement-related fronts, in fact. Nearly eight in 10 (78 percent) question if they will have enough income, 81 percent fear changes that will affect Social Security benefits and 69 percent worry about the impact of low interest rates.
When asked to identify their top concern, current retirees say they are worried about health care costs (29 percent) more than anything else. Meanwhile, among respondents who are still working, the most common worry is “not having enough money to enjoy themselves” (28 percent).
A mere 7 percent of those who have already entered into retirement can relate.
“While we’re working, many of us think about retirement in terms of our leisure pursuits, a kind of permanent vacation that requires more disposable income,” Tom Foster Jr., head of Retirement Plans Practice Management at MassMutual, said in a statement.
“Retirees’ experience tells us that health concerns become increasingly prominent, especially as many retirees begin experiencing health issues and their subsequent costs.”
And when considering the price tag, retirees’ unease surrounding medical matters is beyond warranted.
An assessment by HealthView Services, a software company that specializes in projecting health care costs, found “the average 65-year-old couple could pay almost $490,000 in total health-related costs throughout retirement.” MassMutual noted in its report.
“While many retirees can manage their expenses to lower income levels in retirement, the rising cost of care may steadily reduce their lifestyles as they age,” Foster said. “Once you’re older, it may be impossible to make up for any increasing income needs by simply tightening your belt. It’s far better to err on the side of having more rather than less income than you anticipate needing, especially as costs for care continue to escalate.”
Jessa Claeys is a writer, editor and graphic designer.
