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Why planning for health care costs in retirement is so essential

  • Clients often overlook or underestimate health care costs. It's important to know what Medicare covers and what it doesn't, then build a plan to help cover recurring costs such as out-of-pocket premiums and co-pays.
  • Health care needs are often hard to talk about. Aging brings many challenges, and talking about one's mortality can be intimidating and emotional for some.
  • Costs may make up a sizable amount of some retirees' monthly spending needs. Building a personalized plan to help cover costs can help put a client's mind at ease. Consider variables such as medical conditions and the state where they'll reside in retirement.
  • The cost of care has been difficult to estimate. Planning for health care costs is critical — and challenging. That's why we offer trustworthy resources you can use to get a more accurate picture of a client's expenses.

Why turn to Nationwide as a trusted resource?

Not only has Nationwide’s team of credentialed specialists thoroughly studied the impact of health care costs on retirees, but our partnership with HealthView Services also delivers an enhanced level of personalized reporting. Since 2009, our combined services have offered detailed guidance to help navigate your clients’ planning needs.

Additionally, the Nationwide Retirement Institute® has worked with The Harris Poll since 2012 to survey consumers about their knowledge of and worries about health care costs in retirement. The results of these annual surveys have allowed us to keep up with client concerns and develop timely materials that help financial professionals guide today’s clients in planning for tomorrow’s expenses.

View the latest survey results

Keep these insights in mind as you consider:

Medicare doesn't cover all costs.

Inflation in health care often outpaces overall inflation trends.

Tax-saving opportunities can be found, such as using health savings accounts (HSAs) to pay for long-term care premiums.

Caregiving expectations may impact planning.

Check out our videos

As your clients age, health care and long-term care costs become a real concern. Learn how Nationwide can support your discussions with clients about the need to prepare for these potential expenses.

Review the videos

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The Nationwide® Health Care/LTC Cost Assessment

This tool can help you estimate your client’s future health care costs. Our partnership with HealthView Services uses actuarial science to deliver a customized report. By completing our fact finder with client-specific information, you will receive a report that:

  • Forecasts their health care expenses
  • Estimates their annual Medicare and out-of-pocket expenses
  • Provides personalized details they can act on
For more information about health care costs in retirement, view our many resources.

Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.

Nationwide and HealthView are separate and non-affiliated companies.

[1] "Projected Savings Medicare Beneficiaries Need for Health Expenses Remained High in 2022," Jake Spiegel and Paul Fronstin, EBRI Issue Brief, No. 549 (Feb. 9, 2023).