Overview of Retirement Health Care Risks – Center for Retirement Research

Report key findings are:

• Uninsured health care costs in retirement can be substantial, so nursing homes need to understand the potential risks.
• The results of a new survey of families with $100,000 or more in investable assets show that many underestimate their needs and know little about the cost of medical or long-term services.
• In contrast, financial advisors have a better sense of needs and costs, but families with advisors seem to know no more than those without.
• As a result, many retirees may not be immune to health shocks, forcing them to make difficult adjustments to cushion the shock when it occurs.
• Specifically, the majority of survey respondents said they would cut back on Medicaid and maintain their home equity. In fact, most households end up with home equity and only a few end up on Medicaid.