Retirement Healthcare for Middle-Income Americans

January 2012

Healthcare is one of the major retirement "wild cards" for Boomers and seniors. Poor health can strip people of the enjoyment of their retirement years and their quality of life. Financial fallout from healthcare-related expenses can devastate savings. 

In this new study the Bankers Life and Casualty Company Center for a Secure Retirement reports findings from middle-income Boomers and seniors on their retirement healthcare outlook: their view of the connection between health and retirement satisfaction, their experience with Medicare and understanding of the program, and the expectations of middle-income Baby Boomers approaching Medicare age. Download the Full Study

Download All Key Findings

 

  • Virtually all (98%) of middle-income retirees state that good health is extremely or very important to a satisfying retirement.
  • Nine in ten (93%) middle-income Americans age 47 to 75 feel they have a greater awareness of healthy living now than when they were in their 20s.
  • Alzheimer's disease is the number one health-related fear of aging for middle-income Americans age 47 to 75, approximately twice which of cancer or heart attack.
  • Middle-income Americans age 47 and older are concerned about the future of Medicare (87%) and most believe the federal government will cut back Medicare benefits (71%).
  • Half (51%) of middle-income Americans age 47 and older do not know if healthcare reform will benefit them; more than one-third (36%) say reform will not benefit someone their age.
  • Eight in ten middle-income Americans with Medicare are extremely or very satisfied with Medicare's access to healthcare (81%) and with the quality of healthcare Medicare provides (83%).
  • Two-fifths (42%) of middle-income Americans with Medicare feel that their overall understanding of Medicare is extremely or very good, but there are meaningful gaps in their understanding.
    • One in three middle-income Americans with Medicare still do not know how much the program covers for doctor visits (33%) or hospitalization (31%).
    • Two out of three (66%) middle-income Americans with Medicare do not know if Medicare covers long-term care or overestimate its long-term care coverage.
    • Less than half (42%) of middle-income Americans take advantage of Medicare's annual wellness visit.
  • Two-thirds (65%) of middle-income Americans report paying the same or more for healthcare now that they are on Medicare.
  • Middle-income Americans with Medicare cite long-term care in a facility (48%) as the top healthcare expense that they feel threatens their retirement financial security.
  • More than half (56%) of middle-income Boomers age 47 to 64 report knowing little about the Medicare program, with one in four (26%) admitting to knowing almost nothing about Medicare, even those within a few years of turning 65.
  • More than one-quarter (27%) of pre-Medicare age Boomers could not venture a guess as to how much they think they will pay for healthcare once on Medicare versus what they pay today. One in seven (13%) Boomers under age 65 falsely believe Medicare is free.

Health Living 20sConcerns Medicare SS

The Bankers Life and Casualty Company Center for a Secure Retirement's study Retirement Healthcare for Middle-Income Americans was conducted in September 2011 by the independent research firm The Blackstone Group. 

A nationwide sample of 800 Americans ages 47 to 75 who have an annual household income of between $25,000 and $75,000 participated in the Internet-based survey. A sample of 400 pre-Medicare age Baby Boomers (age 47 to 64) and 400 older middle-income adults (age 65 to 75) comprised the total sample. Significant sub-sample differences were tested at the 95% confidence levels.

Customer Resources

If you want to receive professional guidance on improving your financial security in retirement, these resources can help you find a licensed advisor or agent.

American College

National Association of Insurance and Financial Advisors

National Association of Personal Financial Advisors

Bankers Life and Casualty Company


Bankers Life & Casualty Logo