Nationwide Updates RetirAbility CheckSM
to Account for Health Care Costs in Retirement
Before the recent economic crisis hit Americans, the National
Retirement Risk Index released by the Center for Retirement Research at
Boston College (CRR) last February estimated that nearly 61 percent of
working Americans may not be financially prepared to retire at age 65.
The rising cost of health care was one factor to blame.
The 17-point increase in the National Retirement Risk Index (NRRI) from
the previous Index number of 44 percent – released in January 2007 –
demonstrated how the surging cost of health care was significantly
affecting retirement savings. But, as the nation’s economy continues to
struggle, many Americans are beginning to cut back on their long-term
financial plans due to rising costs of everyday necessities.
“Today’s economic environment plays a large factor in what steps people
are taking to safeguard their future financial security,” said Brad
Davis, vice president of marketing, Individual Investments Group at
Nationwide Financial. “There is an even greater feeling of insecurity
and vulnerability, especially during these demanding economic times.
With more and more companies ceasing defined benefit plans and with
mounting concerns about Social Security, some sources of expected
post-retirement income may not be available to Americans. So, they need
to take a more active and responsible role to secure their safe
retirement.”
Education and online resources may help consumers plan for retirement
and health care costs
To help consumers better prepare for retirement, Nationwide Financial
Services, Inc. (NYSE: NFS) updated RetirAbility CheckSM
to account for the rising cost of health care. This informative,
interactive online experience aligns with the new NRRI data, which only
Nationwide has exclusive access to because of its support of the
retirement research being done by the CRR. Since its founding in 1998,
the CRR is considered by many as an authoritative source of information
and perspective on all major aspects of the retirement discussion.
“This latest update to RetirAbility Check is
important because the rising cost of health care affects every retiree
at some point in their lives,” Davis said. “Our free online site gives
consumers an even more accurate picture of the impact of these rising
costs, and enables them to consider this information as they prepare for
retirement.
“Many in America have to rethink how they are going to make it to
retirement, not just what to plan for when they finally do retire,”
Davis said. “The Index also shows that the risk will rise for younger
workers and low-income households. The Index number could be
considerably higher once long-term care costs are taken into account,
and if households do not plan judiciously.
