"Healthcare can become a six-figure retirement expense, even for people who do 'everything right.' Despite concerns, fewer than half have taken steps to plan for them."
"Optimism bias drives inaction, as many believe that their healthy lifestyle will protect them from future healthcare costs, not realizing the potential magnitude of those expenses."
"Medicare is an essential foundation for healthcare coverage in retirement, but it does not cover all expenses, leading to significant out-of-pocket costs for retirees."
Advances in medicine have increased retirement longevity, leading to higher healthcare costs that can exceed six figures. Despite 80% of adults expressing concern about these expenses, less than half have planned for them. Optimism bias contributes to inaction, as many believe their health will shield them from costs. Additionally, the assumption that Medicare will cover all expenses is misleading, as retirees still face significant out-of-pocket costs. Many pre-retirees are unfamiliar with Medicare's limitations, leading to underestimations of potential healthcare expenses in retirement.
Read at Fortune
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