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Nationwide Financial president John Carter weighs in on the current retirement health-care environment.
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Entitlement reform we are desperate for -- Social Security is on track to go bankrupt by.
When he 333.
Years earlier than expected.
The Medicare find is headed for exhaustion by 20/20 four and nearly three in four say health care costs.
Are going out of control and that is among their top retirement years John Carter is president.
Nationwide and lightening up for an exclusive interviews to talk about the current retirement health care environments on it's great to have you I was so surprised reading the results of this survey.
Weighing you say that people high net -- people are terrified.
About post retirement health care costs.
Yes -- they used the word terrified and these individuals either Americans that -- plan for retirement.
They have -- close to a quarter of a billion dollars.
Yen in assets and they are saying out of control health care expenses.
They're terrified of what that's gonna do their current retirement plans.
And people from your survey findings are drastically under and your estimate excusing the cost of Medicare and the cost of health care costs as it.
-- -- -- know I was gonna say they sure are.
-- in the survey and these are soon to be retirees.
68%.
RR this survey said that they they -- the Medicare would cover close to 68%.
Of their out of pocket health care expenses in retirement the reality is that -- it will cover 51%.
And what we asked them per year if they've estimated what out of pocket health care expenses.
They'll need to plan for in retirement.
They -- a number of 5621.
Dollars.
Reality is close to 111000 dollars but here's what I thought was really interest thing we ask them how they got to that number you know what they said.
Three quarter seven sad that they -- Is this about people just not.
Doing a good enough job preparing their finances managing their -- -- approach retirement or is -- the bigger picture the politics the need for entitlement reform.
I think it says it's so many of the above there's so many questions to ask I know that in my case I have a relative that has a military pension.
He has a railroad pension he may not a plan to live to be ninety years old.
He has long -- risk if you think about it but what are the things -- that we found is that.
Understanding how Medicare works and the role -- that plays in retirement.
We have a lot of work to do for people to understand that because that's really where a lot of questions comments right into the point that -- -- circle had.
Yeah it might assist and then what's your advice John -- -- BL SU -- the statistics over a hundred years if your fortunate to live that long.
You're gonna end up spending three and a half million dollar so what I -- -- to do better to prepare myself for retiring at 65.
Yeah -- more more people are living to be a hundred -- you know that I know that we see it every day.
We need to start the dialogue we need to bring the dialogue again of what health care expenses we need to plan for in retirement.
And again those are our great conversations that investors can have with their advisors.
One thing we found out as those that have retirement plans to working with advisors sell only one in five.
Have talked to their advisor about the impact of health care costs on their retirement plan so.
This is a dialogue that it nationwide financial we want to get out into the market place.
And why we think that the survey that we dead is so important and so relevant right now and John thank you for sharing the findings with.
