Medicare's Shortcomings

For more than a generation now, Americans have come to expect Medicare to be there for them as a critical resource to help with their health care needs throughout retirement. Even high-net-worth individuals think that Medicare will take care of the majority of their medical bills. That's the upshot of a new survey from Harris Polling, wherein 1,250 Americans with household assets of over $250,000 were asked about their retirement plans.

The survey respondents indicated that they expect Medicare to take care of 68 percent of their medical bills in retirement. In actuality, Medicare covers more like 51 percent of those costs. The respondents also said they expect their health care bills to average about $5,600 a year during retirement. The real costs have been estimated at over $10,000 a year.

The survey also found that only one in five Americans had discussed their health care costs with a financial advisor. Planning for health care is a critical part of any retirement plan; if you'd like to discuss how well you're covered, feel free to give me a call.