How Healthcare Costs Are Making Retirement Decisions
According to a recent Gallup Poll, over 72% of investors indicated that the cost of healthcare is a key deciding factor in where and when they decide to enter retirement. The poll gave respondents a choice of five factors that would be most important in impacting their decision to retire. Among the choices were Inflation, Market Conditions, Energy Prices, Interest Rates, and Social Security Solvency, yet none ranked higher than Healthcare Costs.
More from Gallup, “Sixty percent of nonretired investors say being located near good medical facilities will be a major factor in determining where they will live in retirement. This is consistent with the 54% of current retirees who say healthcare was a major determinant of where they decided to retire. Among the four other factors evaluated, nonretirees ranked low state and/or local real estate taxes second, at 52%. But, no other factor was nearly as important as healthcare as far as current retirees are concerned.”
The poll also probed respondents for their feelings on the housing market. Notable statistics were; 93% of pending retirees own their own home, and 75% report that it is worth more today than when they purchased it. 80% of non-retired investors hold a mortgage on their homes, compared to 19% of retired investors. 86% of investors believe that it is “very important” to have their mortgage paid off by the time they retire. 58% of non-retirees say they view their home as an investment asset that will assist in funding their retirements.
The results indicate that healthcare affordability and quality is becoming an increasing concern to a large portion of the baby-boomer demographic that will soon enter retirement.
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