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February 26, 2016 at 09:26 AM
The cost of health care has become a chief economic concern among retail investor households in the U.S., according to new research.
According to research from global analytics firm Cerulli Associates, two of the top five overall household concerns are the cost of health care and the “health of myself or family members.”
“Investors will certainly be reminded of the issues surrounding health care in the U.S., because the repeal or replacement of the Affordable Care Act passed in 2010 will be a major impetus of the GOP candidates,” Shaun Quirk, senior analyst at Cerulli, said in a statement. “No matter the party lines, rising health care costs affect millions of individuals, and will grab front-page headlines throughout the 2016 campaign season.”
Cerulli finds that the cost of health care and “health of self and family” become progressively important topics as investors near retirement, with the data indicating a significant increase in importance between the Generation X and baby boomer generations.”
According to Cerulli, 7% of Gen Xers indicate cost of health care as important, compared with 13% of boomers. The same goes for those indicating “health of self and family” as important – 8% of Gen Xers compared with 12% of boomers.
Analyzing the data even further, Cerulli finds there is a far greater concern regarding health care among those investors with less than $1 million in investable assets.
“This is a key inflection point above which the cost of health care as a household’s greatest economic concern drops significantly,” according to the report. “As investors accumulate investable assets in excess of $1 million, the cost of health care as a concern falls from 21% to 7% among all households (20% to just 5% among Generation X, and 23% to 8% among baby boomers).”
