Most retirees and pre-retirees worry about their health in retirement and how they will pay for any unforeseen healthcare costs. Nationwide Financial has launched its Personal Health Care Assessment to help advisors estimate their clients' health care expenses in retirement.
According to the Congressional Budget Office, Medicare provides health coverage to 46 million older or disabled Americans, but it only covers about 51 percent of the expenses associated with health care services.
"Most Americans aren't thinking about—much less planning for—their health care costs in retirement. Many assume their employers will continue to pay their premiums during retirement or erroneously believe that Medicare will cover all health care expenses," said John Carter, president of Nationwide Financial Distributors, Inc. "The good news is that consumers want help: presenting a large opportunity for advisors."
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The Personal Health Care Assessment program uses proprietary health risk analysis and up-to-date actuarial cost data, such as personal health and lifestyle information, health care costs, actuarial data and medical coverage. The data is analyzed to identify a meaningful, personalized cost estimate that will help clients plan for future medical expenses.
The assessment starts with a questionnaire on the client's health history, lifestyle and family history of medical conditions. After this, they will receive a report that offers suggestions for decreasing health risks. The report will tell clients about their health profile, health risks, estimated life expectancy based on those risks and hypothetical out-of-pocket health care costs during their retirement.
"Retirees must plan for many decisions, most of them guided by law, between the ages of 55 and 77½. These decisions may largely influence retirement behaviors as well as long-term financial adequacy – how and when they withdraw and how to get the most from retirement benefits like Social Security and Medicare," Carter said. "This means that clients need to be educated before and after retirement to make decisions at these key ages. Advisors have the opportunity to play a major role in educating and guiding pre-retirees to achieve their retirement goals and live better, healthier lifestyles."
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S.
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