Charlie Baker had one simple message for investment advisors at the Retirement Income Industry Association spring conference in Chicago: health care costs are going up, up, up.
And that means, as trusted retirement guides, investment advisors should plan with their clients for the eventuality that they will need far more in savings to pay for health care in retirement than previous generations.
“I do think one way or the other, people will have to figure out a way to talk about health and wealth in the same conversation,” said Baker, entrepreneur in residence at General Catalyst Partners.
Baker’s keynote address, entitled “Healthcare and Retirement,” featured just one slide presentation, which remained visible throughout his talk. It was a chart showing the steady climb of health care versus U.S. gross domestic product since 1960.
By 2020, predictions are that health care will account for nearly 15% of GDP, a figure that would have shocked previous generations.
“The problem we have now is that 10,000 baby boomers are retiring every day,” Baker explained. “So this problem is only going to get harder to solve.”
Tackling the health care fiasco would mean taking on one of the largest cohorts in American history — baby boomers — who, as they age, will be more likely to vote. Still, Baker said, “the trend can’t continue.”