It’s no surprise most people are concerned about the cost of health care, but RBC reports investors are hit and miss when it comes to preparing for it.
The wealth management firm published a wealth insights report titled “Taking Care of Health Care in Retirement,” which included a survey on investor perceptions on the topic. RBC partnered with market research firm Ipsos to survey 1,002 middle-aged Americans.
The survey results showed 80 percent of respondents are concerned about funding the cost of health care, and women investors are more concerned than others. RBC cited women’s overall tendency to live longer than men as a cause for their concern.
“These additional years are significant, resulting in costs that are typically one-third higher than for men overall,” RBC stated in the report.
The survey also asked respondents if they were preparing for health care costs in their retirement plan; 56 percent stated they were. From this group, the firm discovered that half are underestimating costs. Survey participants expected to spend an average of $2,700 annually, but RBC reported that 65-year-olds usually spend $5,700 ($11,400 for married couples). According to RBC, the miscalculations reflect investors may be less informed about costs or the complexity of costs in health care.
When RBC looked at the respondents who weren’t making preparations, they found that more than half of them had yet to fund a retirement plan.