Retirement conundrum: crippling health care costs or start dumping assets?
January 28, 2025 by Steve Randall
Millions of Americans are facing a challenging decision about their retirement that could include spending-down their assets.
Read the full story via InvestmentNews
Wink’s Moore on the Market: To crush under crippling health care costs, or spend-down your assets- that is the question we ponder here.
This piece highlights an interesting survey by Jackson.
Among the key findings?
Two thirds of pre-retired respondents are underestimating both the cost and the likely requirement of health care in retirement.
Further, while just 27% believe they will need long-term care in their lifetime, data from Morningstar in 2023 showed that this is a reality for 70% of those turning 65 each year!
AND- the research cites data showing a 120% increase in the price of medical care including services, insurance, drugs and equipment since 2000.
But what I cannot figure out is why an annuity company would be doing research on health care costs? Does this research ultimately benefit Jackson by ensuring that retirements (annuities) aren’t cashed-in to pay for health care expenses?
Inquiring minds want to know… -sjm
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