Almost two-thirds (63%) of respondents to a new survey said they worry that the Medicare program will run out of money before they are eligible for benefits.
In fact, for the annual Nationwide Retirement Institute Health Care Costs in Retirement survey, published Monday, 20% of participants indicated that the idea of Medicare running out of money before they need it is their biggest stressor in planning for retirement.
“Concerns about the future of Medicare are adding another layer of uncertainty for Americans as they consider how they’ll manage healthcare costs in retirement,” said Kristi Martin Rodriguez, senior vice president of the Nationwide Retirement Institute. “With high living costs already squeezing household budgets, many are worried about having enough saved to cover their long-term healthcare.”
Although Medicare insolvency received a five-year extension in May, many survey respondents want reforms now to ensure the program’s longevity. Forty-two percent of respondents to the survey said that ensuring Medicare’s stability should be the top healthcare priority for the next federal administration. Other priorities identified by participants were lowering out-of-pocket healthcare costs and lowering prescription drug prices.
“Notably, these reforms have some bipartisan support for the next administration to address with 47% of Democrats and 43% of Republicans prioritizing Medicare’s stability, and 47% of Democrats and 44% of Republicans wanting lower prescription drug prices to be addressed,” according to the report.
High healthcare costs in general pose concerns for Americans planning for retirement. Two-thirds (67%) of the respondents said that a single large healthcare issue could wipe out their savings. Almost half (49%) said medical and health expenses have drastically reduced how much they saved/will be able to save for retirement.
An unexpected $5,000 healthcare out-of-pocket expense would send 44% of the respondents into debt, according to the survey results. One fourth (25%) of participants said they were considering canceling or postponing routine care this year because of costs.
