This Concern is No. 1 Barrier to Early Retirement

401k, HSA, retirement, worry

Ironic: Worrying over healthcare could wreck his retirement health.

When asked to name barriers to financial independence and early retirement, Americans are less concerned about uncertain market conditions or inflation, than they are about healthcare.

“While Americans are enjoying longer lifespans, which may mean covering healthcare expenses and long-term care costs for extended periods of time, they also face the increasing costs of healthcare,” says Matt Sadowsky, director of retirement and annuities with TD Ameritrade, which fielded a recent study. “The good news is that Americans do recognize that health costs should be a top priority when planning for retirement, with 57% showing interest in holistic wellness planning, including financial and physical health.”

Health is a motivator to retiring early

Covering healthcare costs in retirement

“When planning for retirement, it’s important to factor in the healthcare expenses as part of the overall equation,” Sadowsky adds. “A comprehensive retirement plan should not only address market risk, it should also include strategies and instruments that help hedge against healthcare and long-term care costs.”

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