According to a 2012 survey1 by Nationwide Financial®, women are more likely than men to underestimate the amount they’ll need for health care costs in retirement. This is especially troubling due to the unique challenges women face, including:
- Lifespan − Women live an average of 5 years longer than men2
- Time spent out of the workforce − As primary caregivers, women typically work 12 years less than men over their lifetime, according to the Women’s Institute for a Secure Retirement
- Lower earnings − On average, women earn 77 cents for every dollar compared to what a man earns2
- Social Security − They rely more on it due to smaller pensions and overall assets3
Since most women will spend more time in retirement, it potentially places them at a greater risk of outliving their retirement assets. It could also increase their chances of incurring long-term care costs, so it’s important for women to plan for health care costs in retirement.
Many factors are involved planning for health care in retirement, like estimated Medicare coverage, other health insurance coverage and potential retirement income sources.