Medical expenses and debt are denting many retirement plans.

The high costs of health care and the burden of medical-related debt are creating financial stress among many Americans. Among those we surveyed, more than two in five (44%) said they could not pay off an unexpected $5,000 health care expense out-of-pocket.

Not only does health care cost stress affect everyday decisions, it’s also impacting their future financial plans.

Man and his daughter fishing at a lake.
49%

said medical and health care expenses have drastically reduced how much they have saved or will save for retirement.

41%

said medical and health care debt has drastically reduced how much they have saved or will save for retirement.

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Medicare uncertainty fuels doubt about covering retirement health care costs.

The results of our survey showed widespread anxiety about the sustainability of Medicare. Nearly two-thirds of adults are terrified of what health care costs might do to their retirement plans, and a majority worry that Medicare won’t be available when they need it.

But many people also lack understanding about how Medicare works, compounding fears about covering future health care expenses.

2 in 3


Two-thirds of adults (67%) wish they understood Medicare coverage better.

A comprehensive financial plan should address future health care costs.

By including retirement health care costs as part of financial planning, financial professionals can help clients prepare in advance for the uncertainties around retirement health care and boost their confidence in realizing a more secure financial future.

4 in 5


83% of adults agree that managing health care costs should be part of personal financial planning in retirement.


Yet, over half (57%) of those who pay to work with a financial professional say their financial professional has not provided advice on how or when to file for Medicare benefits. For financial professionals, health care cost planning can be a key point of differentiation for prospective clients, while also helping to build stronger relationships with current clients.

What Medicare topics do people want to learn about the most from a financial professional when discussing retirement?

41%

What Medicare will cost overall.

37%

What different parts of Medicare (A, B, C, D and Medigap) cover.

34%

What health care costs are paid out-of-pocket and not covered by the Medicare plan they have.

Knowledge and planning can help clients better prepare for retirement health care costs.

Planning for future health care costs can be confusing. Resources from Nationwide can help. Share our guides and videos to show clients how Medicare works and simplify the different financial decisions they make. With the Nationwide® Health Care Cost Assessment tool, you can estimate a client’s expected retirement health care expenses to include them as part of their comprehensive financial plan.

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See our retirement health care cost planning resources.

Survey Methodology: The 2024 NRI Healthcare survey was conducted online in the United States by The Harris Poll on behalf of Nationwide among 1,692 adults age 18+ residing in the U.S. (“national sample”), including 419 Gen Z (18-26), 424 millennials (27-42), 438 Gen X (43-58), and 411 boomers+ (59+). The survey was conducted July 9–31, 2024.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income and smoking status to bring them in line with their actual proportions in the population (for those age 28+). Gen Z (18-27) data are weighted by age by gender, race/ethnicity, region, education, size of household and smoking status.