People should be prepared to spend approximately 30 percent of their income on health care expenses in retirement, 10 percent more than most people polled in a new survey anticipate spending.
Aviva USA discloses this finding in a second annual survey published in collaboration with the Mayo Clinic. The report focuses on the tie between health, finances and retirement issues. Ipsos, a global market research company, conducted the survey of nearly 1,500 nonretired U.S. adults on their health habits and financial preparedness.
The report reveals that nine in 10 people expect to spend less than 20 percent of their monthly retirement income on medical and dental expenses. And seven out of 10 expect to spend just 10 percent or less.
In reality, people should be prepared to spend approximately 30 percent of their income on health care expenses in retirement, according to The Urban Institute.