Your client may seem well prepared as he or she approaches retirement with substantial assets. But they may still be worried about what will happen if they run into health problems and their medical bills start piling up.
That was one of the client issues that cropped up in a new UBS survey that questioned some 2,000 investors last month about their hopes and fears as they approach retirement. The investors, pre-retirees and those in retirement, had a minimum of $1 million in investable assets.
“Health care remains a top concern for wealthy investors,” UBS wrote in its Q3 Investor Watch Survey, entitled “Retiring Old Clichés.” About three quarters of respondents said that “getting sick is their greatest retirement fear.”
Only about half said they feel secure about long-term-care planning in retirement. Indeed, the report said that “health care keeps wealthy investors up at night." The report also warned that many investors are “likely to underestimate the health and long-term costs of retirement.”
The survey found that, while most said they are prepared for retirement, less than half feel secure about their health and long-term-care planning. The survey reported that 73 percent of respondents said their top concern is getting sick, with half of this group worried they will not have anyone to take care of them.
A UBS official, commenting on the report, said the findings indicate an opportunity for advisors to provide more service, even though most respondents believe they are financially secure. “Their health fears are outweighing their financial concerns. And when I say their health fears, it isn’t just the money part of it. It is broader than that,” said Sameer Aurora, head of client strategy for UBS Wealth Management.
This fear creates an opportunity for advisors “to do better long-term health planning. Should advisors be doing more on this? I would say absolutely yes,” Aurora added.