A new survey suggests that concerns about health care and health care costs will continue to weigh on retirement security. In the Cigna study, 75% of respondents believe health costs for preventive care, emergencies, treatments, prescriptions and long-term care could ruin their prospects for a secure retirement.
Additionally, 44% worry they won’t have the money to pay for their children’s college education because of health costs. Forty-two percent of consumers note hospitalization as their number one health cost concern, followed by health costs for a spouse or partner (19%) and costs of medications (16%).
A majority, 80%, say they wish “doing healthier things didn’t cost so much.” And cost is the number one reason people give for not going to the doctor.
Looking to the future, just over half (54%) have a favorable outlook and liken their health costs to their monthly internet, television or phone bill. More than four in 10 consumers (46%) are less favorable and say health costs will rise faster than their household income; for them, health costs equal a monthly rent or mortgage payment.
Taking Steps
That said, many consumers (83%) report taking steps to improve their health, and for most (79%), health is a work in progress. Those who haven’t yet reached their goals cite “getting sidetracked by life” events (41%) and lack of willpower (39%) as the reasons.
Respondents say they’re motivated to improve by cash rewards, health insurance premium discounts and positive reinforcement, as well as online tools, mobile apps and support groups to help them stay on track, as well as different types of insurance coverage or programs beyond their medical plans to provide financial protection. In the latter category, the options listed as having the highest interest were:
• long-term disability coverage (39%)
• critical illness insurance (37%)
• vision insurance (34%)
• accidental injury insurance (34%)
• having a health care manager to help with health care finances (34%)
• short-term disability (33%)
Affordability is a greater challenge for those who earn less than $50,000, are of Hispanic or Asian descent, and have children at home, according to the report. About half of all people surveyed say they’ve sacrificed health care at times to pay for other needs, with one in four people aged 25-34 saying they’ve done so once a month.
“Health and Financial Well-being: How Strong Is the Link?” was conducted electronically via a panel by MRops Data Collection from August 7-21, 2014, with 1,847 women and men 25-64.
