The majority of Americans believe that healthcare costs are the largest barriers to financial independence and early retirement. Although there are other barriers, such as market conditions or inflation, the cost of healthcare is the most intimidating one.
Americans are enjoying longer lifespans, but that also means that they're facing the increasing cost of healthcare, especially later in life. The cost of healthcare is so relevant that most Americans consider it a top priority when they’re planning for retirement. So, how do we approach healthcare costs throughout retirement? Most Americans, 76 percent, believe that Medicare will be the best way to pay for healthcare while retired. However, more than half of pre-retirees, 61 percent, don’t think that Medicare will cover the bulk of their medical expenses.
Other tools that Americans plan on using to tackle healthcare expenses include:
Supplemental health insurance
The bottom line is that while planning for retirement, Americans need to consider medical expenses as one of their main priorities. Although Medicare can help, it’s best not to rely completely on one system but rather think through all of the options, and have several back-up plans.