Health Care Costs Cause Millionaires To Put Off Retirement, Survey Finds
A new survey of 1,312 people with "at least $1 million to invest, not including the value of their residences" indicates that significant assets do not "eliminate worries over increasing health care costs," Dow Jones/Wall Street Journal reports. The survey by the company Northern Trust says that almost half of employed millionaires plan to continue working at least part-time during their retirement years, a decision in part because of stock market fluctuations. Further, 10% of respondents with $10 million in assets say they do not plan to retire because they said they feel insecure about their financial situations or enjoy working, the survey finds.
Other recent research has shown that many employers are eliminating health benefits for future retirees or requiring them to contribute more of the cost of those benefits, Dow Jones/Journal reports. Northern Trust Senior Vice President Thomas Hines said, "What happens is that when you're no longer part of a larger group, health care plans have restrictions. If you have a catastrophic illness over a significant period of time, this can quickly" deplete benefits (Chu, Dow Jones/Wall Street Journal, 2/3).