Women who are close to retirement significantly underestimate the amount of money they’ll have to spend out-of-pocket in retirement to cover health care costs, according to a new report.
Nationwide Financial, Columbus, Ohio, published this finding in a summary of results from a new survey, “Health Costs in Retirement: Consumer Study.” The online survey, conducted by Harris Interactive on behalf of Nationwide Financial in January, polled 625 adults (including 215 women) ages 55+ having $250,000 or more in household assets who plan to retire by 2020; plus 625 adults ages 65 and older having $250,000 or more in investable assets.
The women polled say they will spend $4,624 each year on health care beyond what Medicare covers. That’s 21% less than the $5,882 men nearing retirement estimate they will spend each year on things like premiums, copayments and deductibles.
However, a 2012 study found that a 65-year-old couple retiring today would need $240,000 (not including long-term care costs) to cover medical expenses during their retirement years.