Jackson Study Reveals Vast Underestimation of Healthcare and Long-Term Care Costs in Retirement Planning
Jackson Financial Inc. (NYSE: JXN) released a comprehensive study revealing significant gaps in retirement healthcare planning. The research, conducted with the Center for Retirement Research at Boston College, shows that nearly two-thirds of pre-retired investors underestimate their future healthcare expenses, expecting costs at least $1,220 below the $8,600 annual estimate.
Key findings highlight that only 27% of investors believe they will need long-term care, despite statistics showing 70% of individuals turning 65 will require such care. The study also revealed that medical care costs have increased by over 120% since 2000. More than 60% of investors are considering spending down assets to qualify for Medicaid as a long-term care funding solution.
The research, conducted between July-August 2024, surveyed 400+ financial professionals and 500 investors with minimum assets of $100,000, aged 48-78 years. The study is part of Jackson's Security in Retirement Series, following previous research on longevity and inflation risks.
Jackson Financial Inc. (NYSE: JXN) ha pubblicato uno studio completo che rivela significative lacune nella pianificazione sanitaria per la pensione. La ricerca, condotta insieme al Center for Retirement Research del Boston College, mostra che quasi due terzi degli investitori pre-pensionati sottovalutano le loro future spese sanitarie, aspettandosi costi almeno $1.220 inferiori alla stima annuale di $8.600.
I risultati principali evidenziano che solo il 27% degli investitori crede di aver bisogno di assistenza a lungo termine, nonostante le statistiche mostrino che il 70% delle persone che compiono 65 anni avrà bisogno di tale assistenza. Lo studio ha anche rivelato che i costi delle cure mediche sono aumentati di oltre il 120% dal 2000. Più del 60% degli investitori sta considerando di ridurre i propri beni per qualificarsi per Medicaid come soluzione di finanziamento per l'assistenza a lungo termine.
La ricerca, condotta tra luglio e agosto 2024, ha coinvolto oltre 400 professionisti finanziari e 500 investitori con beni minimi di $100.000, di età compresa tra i 48 e i 78 anni. Lo studio fa parte della Security in Retirement Series di Jackson, seguendo precedenti ricerche sui rischi di longevità e inflazione.
Jackson Financial Inc. (NYSE: JXN) publicó un estudio integral que revela significativas deficiencias en la planificación sanitaria para la jubilación. La investigación, realizada con el Center for Retirement Research de Boston College, muestra que casi dos tercios de los inversores pre-jubilados subestiman sus futuros gastos de salud, esperando costos al menos $1,220 por debajo de la estimación anual de $8,600.
Los hallazgos clave destacan que solo el 27% de los inversores cree que necesitará atención a largo plazo, a pesar de que las estadísticas muestran que el 70% de las personas que cumplen 65 años requerirán dicha atención. El estudio también reveló que los costos de atención médica han aumentado más del 120% desde el año 2000. Más del 60% de los inversores está considerando gastar sus activos para calificar para Medicaid como solución de financiamiento para atención a largo plazo.
La investigación, realizada entre julio y agosto de 2024, encuestó a más de 400 profesionales financieros y 500 inversores con activos mínimos de $100,000, de entre 48 y 78 años. El estudio es parte de la Security in Retirement Series de Jackson, tras investigaciones previas sobre los riesgos de longevidad e inflación.
잭슨 파이낸셜 주식회사 (NYSE: JXN)는 은퇴 후 건강 관리 계획에서 중요한 격차를 드러내는 종합 연구를 발표했습니다. 보스턴 대학교 은퇴 연구 센터와 함께 진행된 이 연구는 은퇴를 앞둔 투자자의 거의 3분의 2가 향후 건강 관리 비용을 과소평가하고 있으며, 비용이 연간 $8,600의 추정치보다 최소 $1,220 낮을 것으로 예상하고 있음을 보여줍니다.
주요 발견 사항은 통계에 따르면 65세가 되는 개인의 70%가 장기 요양이 필요할 것이라는 사실에도 불구하고, 단지 27%의 투자자만이 장기 요양이 필요하다고 믿고 있다는 것입니다. 이 연구는 또한 2000년 이후 의료비가 120% 이상 증가했다고 밝혔습니다. 60% 이상의 투자자가 Medicaid 자격을 얻기 위해 자산을 축소하는 것을 고려하고 있습니다.
2024년 7월에서 8월 사이에 수행된 이 연구는 최소 자산이 $100,000인 400명 이상의 금융 전문가와 48세에서 78세 사이의 500명의 투자자를 설문조사했습니다. 이 연구는 잭슨의 은퇴 안전 시리즈의 일환으로, 장수와 인플레이션 위험에 대한 이전 연구에 이어 진행되었습니다.
Jackson Financial Inc. (NYSE: JXN) a publié une étude complète révélant d'importantes lacunes dans la planification des soins de santé pour la retraite. La recherche, menée avec le Center for Retirement Research du Boston College, montre que près des deux-tiers des investisseurs pré-retraités sous-estiment leurs futures dépenses de santé, s'attendant à des coûts au moins $1,220 inférieurs à l'estimation annuelle de $8,600.
Les résultats clés mettent en évidence que seulement 27% des investisseurs pensent qu'ils auront besoin de soins à long terme, malgré des statistiques montrant que 70% des personnes atteignant 65 ans auront besoin de tels soins. L'étude a également révélé que les coûts des soins médicaux ont augmenté de plus de 120% depuis 2000. Plus de 60% des investisseurs envisagent de réduire leurs actifs pour se qualifier à Medicaid comme solution de financement des soins à long terme.
La recherche, réalisée entre juillet et août 2024, a interrogé plus de 400 professionnels financiers et 500 investisseurs avec des actifs minimums de $100,000, âgés de 48 à 78 ans. L'étude fait partie de la Security in Retirement Series de Jackson, faisant suite à des recherches précédentes sur les risques de longévité et d'inflation.
Jackson Financial Inc. (NYSE: JXN) hat eine umfassende Studie veröffentlicht, die erhebliche Lücken in der Gesundheitsplanung für den Ruhestand aufzeigt. Die Forschung, die in Zusammenarbeit mit dem Center for Retirement Research der Boston College durchgeführt wurde, zeigt, dass fast zwei Drittel der bevorstehenden Rentner ihre zukünftigen Gesundheitskosten unterschätzen und mit Kosten rechnen, die mindestens $1.220 unter der jährlichen Schätzung von $8.600 liegen.
Wichtige Erkenntnisse heben hervor, dass nur 27% der Investoren glauben, dass sie langfristige Pflege benötigen werden, trotz der Statistik, die besagt, dass 70% der Personen, die 65 Jahre alt werden, solche Pflege benötigen werden. Die Studie hat auch ergeben, dass die Kosten für medizinische Versorgung seit 2000 um über 120% gestiegen sind. Mehr als 60% der Investoren ziehen in Betracht, Vermögenswerte zu reduzieren, um sich für Medicaid als Finanzierungslösung für die langfristige Pflege zu qualifizieren.
Die Forschung, die zwischen Juli und August 2024 durchgeführt wurde, befragte über 400 Finanzprofis und 500 Investoren mit einem Mindestvermögen von $100.000 im Alter von 48 bis 78 Jahren. Die Studie ist Teil von Jacksons Security in Retirement Series, die auf früheren Forschungen zu Langlebigkeits- und Inflationsrisiken basiert.
- None.
- Nearly 2/3 of pre-retired investors underestimate healthcare expenses by at least $1,220 below the $8,600 annual estimate
- Medical care costs increased by over 120% since 2000
- 60% of investors considering asset spend-down to qualify for Medicaid, indicating financial strain
- Only 27% of investors expect to need long-term care despite 70% likelihood
Insights
This comprehensive research from Jackson (NYSE: JXN) reveals critical insights that could significantly impact the company's market position and the broader insurance industry. The stark disconnect between retirement planning expectations and reality presents both challenges and opportunities for Jackson's business model.
The study's findings highlight three key business implications:
- A substantial market opportunity in long-term care and healthcare-focused retirement products, given that nearly two-thirds of pre-retirees are underestimating healthcare costs
- Potential for product innovation in the retirement solutions space, particularly targeting the 73% of investors who don't believe they'll need long-term care
- A clear competitive advantage for Jackson in having deep consumer insights that can inform product development and marketing strategies
The research's timing is particularly strategic given the upcoming election and potential healthcare policy changes. This positions Jackson to potentially capitalize on market uncertainty by offering innovative retirement solutions. The company's focus on research-driven insights could strengthen its market leadership in the retirement planning sector.
From an investor perspective, this research suggests potential growth opportunities for Jackson's business. The company's understanding of consumer behavior and retirement planning gaps could drive product development and market expansion, potentially leading to increased market share and revenue growth in the retirement solutions segment.
The findings expose a critical disconnect in the retirement planning industry that could reshape financial services offerings. The revelation that 60% of investors might consider spending down assets for Medicaid qualification signals a potential threat to traditional wealth management models and highlights the need for innovative financial products.
Several industry-wide implications emerge:
- Advisory Evolution: Financial professionals need to adapt their services to address the 56% who cite healthcare costs as a major retirement risk
- Product Development: The significant underestimation of healthcare costs creates demand for specialized retirement planning tools and insurance products
- Market Segmentation: The gender disparity in healthcare planning awareness suggests opportunities for targeted financial solutions for women
The research indicates a growing need for integrated retirement planning solutions that combine traditional investment management with healthcare cost planning. This could drive increased demand for comprehensive financial advisory services and specialized retirement products, potentially benefiting firms like Jackson that are positioned to offer such solutions.
Latest research in Jackson’s Security in Retirement Series exposes critical gaps in retirement healthcare planning amid rising costs of care and increased life expectancy
Nearly two-thirds of pre-retired investors surveyed are underestimating their expected healthcare expenses in retirement
Only
Jackson’s research reveals a notable gap between individuals’ perceptions of healthcare and long-term care costs and their overall financial preparedness, underscoring the need for better retirement planning. The findings reveal critical risks once retired, particularly in light of rising healthcare expenses, longer lifespans and the increasing prevalence of chronic conditions, all of which highlight a growing need for proactive planning to achieve a secure retirement.
Key findings from the research include:
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Healthcare costs are grossly underestimated. Nearly two-thirds of pre-retired investors surveyed are underestimating their prospective healthcare expenses in retirement, anticipating health care expenses at least
$1,220 $8,600 27% of investors surveyed believe they will require long-term care at some point in their lives, however,70% of individuals turning 65 each year are likely to need this type of care at some point in their lives.3 This is particularly notable, as Jackson’s recent longevity risk study found the vast majority of investors inaccurately predict their life expectancy, increasing retirement income planning risk. -
Rising costs and advancements in technology increase financial burden. Advances in medical technology and treatments are expected to increase healthcare costs significantly over the next decade. The price of medical care including services, insurance, drugs and equipment has increased by over
120% since 2000,4 leaving many retirees at risk of draining their savings. These findings align with insights from Jackson’s 2024 inflation risk study, which examined how pre-retired households struggle to adapt to rising costs of essential expenses, including healthcare, in the face of inflation. -
Investors are considering asset spend-down to qualify for Medicaid. More than
60% of investors surveyed said they plan to or may consider spending down their assets to qualify for Medicaid as a long-term care funding solution but may be underprepared for the dramatic life changes that would come with spending down their assets. -
Concerns over long-term care costs are amplified among financial professionals surveyed. Two in five financial professionals are concerned that clients will be unable to afford acceptable care, with
56% citing this as a major risk for retirees. - Personal experience drives better preparedness. Respondents who have seen family members require long-term care are nearly twice as likely to believe they will need similar care. This group is also more proactive in exploring costs, adjusting retirement timelines and planning for assisted living expenses.
- Women face unique challenges. Women leading household financial decisions express higher concern about healthcare risks but are less likely to anticipate requiring long-term care despite longer life expectancies. Many report lower income and asset levels, yet they are three times more likely than men to be caregivers for family members.
“Retirement should be a time for security and stability, however, our research shows many households may be unprepared for the realities of the healthcare challenges and expenses they will face,” said Glen Franklin, Assistant Vice President of Research, RIA and Lead Generation Strategy for Jackson National Life Distributors LLC (JNLD), the marketing and distribution business of Jackson. “Our research is particularly timely given potential policy shifts resulting from the election outcome, as proposals addressing healthcare reform and federal funding for long-term care programs could significantly impact retirees’ healthcare costs and savings strategies. This further underscores the importance of working with financial professionals to prepare for an evolving landscape and proactively address healthcare risks in investors’ retirement plans."
“These new survey data should be a wakeup call for policymakers, financial professionals and older Americans themselves,” said Andrew Eschtruth, Director of the Center for Retirement Research at
The research, fielded between July 12-August 2, 2024, included online surveys of more than 400 financial professionals and 500 investors with at least
Jackson’s ongoing work with the Center for Retirement Research at
To access details and up-to-date findings relative to this research as well as other proprietary research materials developed by Jackson on topics that impact the saving and spending habits of Americans, visit www.jackson.com/researchcenter.
ABOUT JACKSON
Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.
*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2023. (Criteria used for Call Center World Class FCR Certification is
Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (
Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding
This material should be considered educational in nature and does not take into account your particular investment objectives, financial situations, or needs, and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any product, security, or investment strategy.
Annuities are issued by Jackson National Life Insurance Company (
Jackson® is committed to ensuring more Americans in or nearing retirement can benefit from greater clarity and confidence in their financial futures. To better support this important goal, we have partnered with leading academic experts at the Center for Retirement Research at
Firm and state variations may apply. Additionally, products may not be available in all states.
*Guarantees are subject to the claims-paying ability of the issuing insurance company.
1 Jackson Financial Inc. is a
2 This is based on a subset of 114 pre-retired investors surveyed and excludes those who indicated they were unable to provide an estimate of annual household health care expenses.
3 Christine Benz, Morningstar, “100 Must-Know Statistics about Long-Term Care: 2023 Edition,” March 29, 2023.
4 Shameek Rakshit, et al., Peterson-KFF Health System Tracker, “How does medical inflation compare to inflation in the rest of the economy?” August 2, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122854732/en/
Media Contact:
Patrick Rich
Patrick.Rich@Jackson.com
Source: Jackson Financial Inc.
FAQ
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