Why Health Matters to Retirement Savings

The 2018 HealthView Retirement Healthcare Costs Data Report suggests that average healthy 65-year-old couple retiring this year can expect to pay $363,946 in lifetime Medicare and supplemental insurance premiums and healthcare-related out-of-pocket costs. An unhealthy 65-year-old couple will pay even more. This sobering fact, coupled with the idea that many of your employees chose to ignore retirement education, underlies the importance of helping your employees educate themselves on both retirement saving in general and how healthcare relates to retirement savings.

 

Retirement Planning

Many individuals don’t realize that healthcare in retirement is not free. When employers offer information about successful retirement planning, it not only alleviates financial stress from the workforce, but also helps to allow individuals to retire comfortably, and in a timely manner – allowing the natural progression of the workforce to continue. Providing simple resources to your employees is a good idea. However, providing individualized and personalized information that allows people to see any potential gap they may have in their retirement savings and help them to project their costs would be ideal – that is what HealthyCapital offers.

 

Healthcare in Retirement Planning

Taking care of oneself now can make a big difference to health care costs – both now and in retirement. By improving health and investing the savings, a 45-year-old woman with Type 2 diabetes and high cholesterol could add more than $100,000 to her 401(k) retirement savings and eight years to her life expectancy through simple changes such as moderating alcohol intake and continuing to take medication as prescribed. Furthermore, a 50-year-old man diagnosed with high blood pressure could save an average of $2,234 per year in out-of-pocket health care costs and add three years to his life expectancy by properly managing his health.

 

Think this is just good for your employee base? Think again. Employer savings from improved health condition management are significant. A self-insured company with 5,000 employees could save more than $2.5 million in health care costs. A happier, healthier personnel base can lead to reduced sick time, increased productivity, and improved morale. The morale of the story? Next time you’re shopping for an employee wellness program, make sure to look into ones that integrate physician and financial wellness in an individualized and personalized manner – like HealthyCapital.