Retired boomers "surprised" at the cost of healthcare

A new survey, conducted by Bankers Life and Casualty Company Center for a Secure Retirement, asked 300 retirees between ages 55 to 75 with an annual household income between $25,000 and $75,000, a variety of open-ended questions about what they have learned since they stopped working and what challenges they have faced.

Many retirees say their health itself had become a challenge.  While some felt their health had improved since leaving the workforce, nearly one in five (18 percent) said they had dealt with unexpected health issues.

The high costs of medical expenses were also a big issue.  When asked what costs more in retirement than they thought it would, more than half (55 percent) of respondents indicated that healthcare is costing them more than anticipated.  And if given the opportunity to go back in time, retirees say they would make saving for their healthcare costs a much bigger priority.

While many have experienced increased costs in every aspect of life, here’s a look at the top five expenses that were higher than expected among America’s retirees:

•   Healthcare – 55%
•   Groceries – 41%
•   Car/Transportation – 38%
•   Prescription Drugs – 33%
•   Utilities – 22%

Retirees polled had many goals beyond the stereotypical ideas of retiring to Florida, seeing their grandchildren and traveling the world.  When asked what goal they hope to accomplish in the next three years, more than one in three (36 percent) have a personal goal that focuses on their health and wellness.  While some people wanted to travel, many retirees wanted to be in better health (21 percent) or lose weight and be more physically fit (15 percent).

“Many times when people think about retirement planning, they only think about money,” said Chris Campbell, vice president of marketing and business development at Bankers Life and Casualty Company, a national life and health insurer.  “While that is important, don’t over look your health.  Living a healthy lifestyle keeps healthcare costs down and the ability to fully enjoy your retirement years.”

Here’s a look at the top five goals today’s retirees hope to accomplish in the next three years:

1.  Travel 
2.  Maintain or Improve Health
3. Lose Weight/Get Physically Fit
4.  Home Improvements
5.  Spend More Time with Family

The Bankers Life and Casualty Company Center for a Secure Retirement’s survey series Listening to Middle-Income Americans was conducted in April 2012 by the independent research firm The Blackstone Group. Excerpts from the report can be viewed at www.CenterForASecureRetirement.com

A nationwide sample of 300 retirees ages 55 to 75 who have an annual household income of between $25,000 and $75,000 participated in the Internet-based survey.  Significant sub-sample differences were tested at the 95% confidence levels.

The Bankers Life and Casualty Company Center for a Secure Retirement studies and consumer awareness campaigns provide insight and practical advice for how everyday Americans can achieve financial security during retirement.

Established in 1879 in Chicago, Bankers Life and Casualty Company focuses on the insurance needs of the retirement market.

Best US Cities for Oldsters

Minneapolis is the best city in the United States for senior living, with Boston, Pittsburgh, Cleveland and Denver rounding out the top five, according to a new survey conducted for the Bankers Life and Casualty Company Center For a Secure RetirementSM.

Criteria in the areas of senior issues and gerontology identified the qualities for optimal senior living. Major categories were: healthcare, economy, health and longevity, social, environment, spiritual life, housing, transportation and crime. Each category was statistically weighted to reflect the needs of the senior population.

“Most surprising is that the survey results contain many cities we don’t often associate with senior living,” said Scott Perry, president of Bankers Life and Casualty Company, the national life and health insurer. “We weren’t interested in another study on where to enjoy your retirement, but instead wanted to find cities that did the best job in providing the services and support that seniors need. The top ranked cities aren’t what come to mind when you think about where to spend your golden years, but they scored high in the criteria most important to the 65 and up bracket.”

The Categories

The Healthcare category includes physicians per capita, gerontologist to senior ratio, hospitals per capita, hospitals with special care, nursing homes per capita, nursing home beds per capita, continuing care retirement communities per capita and average nursing home rating.

Economy includes consumer price index, sales tax rate, the unemployment rate and the stability index.

Health and Longevity includes life expectancy, age 85 expectancy, depression rate, heart mortality and cancer mortality.

Social includes percentage of seniors, social and emotional support, satisfaction with life rating, art and museums, education level, recreation, four-year colleges and libraries.

Environment includes number of sunny days, clean air levels, clean water measurement, natural disaster risk index, ocean coastline miles, river and lake square mileage, and local/state park number and size.

Spiritual Life includes percent of population belonging to organized religions and the number of religious congregations.

Housing includes cost of living index, housing price, property taxes and apartment rentals.

Transportation includes public transportation, special access and mass transit percentage.

Crime includes violent crime rate and property crime rate.

Methodology

The Bankers Life and Casualty Company Center for a Secure Retirement Best Cities for Seniors 2011 was conducted in July of 2011 by the independent survey administrator Sperling’s Best Places and identified the top 50 metro areas in the U.S. The complete report may be viewed at www.CenterForASecureRetirement.com.