The cost of retirement health care: Expectations and concerns of older workers
The expected cost of health care in retirement is a major concern of older workers.
To gauge the amount of money they will need for a comfortable retirement, individuals must account for expected health care expenditures. However, general estimates of such costs can vary widely, and attempts to evaluate individual needs may prove daunting to many near retirees. This paper describes the perceptions and concerns of older higher education faculty and staff regarding health care costs in retirement, including how much money people expect to spend on health care after they stop working, whether they are saving for such costs, and how they plan to finance their health care needs.
The authors in 2016 surveyed 2,532 full-time workers aged 50 and older employed at one of 14 higher education systems across the U.S. The participating institutions offer a wide variety of retiree health care benefits, ranging from no such benefit at all, to a defined contribution benefit, to several types of traditional defined benefit retiree health plans.