Methodology

Ipsos Public Affairs conducted a telephone survey from September 6-20, 2005. with a nationally representative sample of 1,016 adults with health insurance, ages 45 to 75. To assure a nationally representative sample, the survey results are weighted for gender, age, household income and region. These are matched to targets from the most recent Current Population Survey provided by the U.S. Census. The margin of error is +/- 3.1 percentage points.

Retirement Planning

Among retirees, 65 percent of men were taking the lead for retirement planning, compared to 39 percent of women. Among all pre-retirees, men and women are equally responsible for planning, with 54 percent of men and 48 percent of women leading the charge.

Clearly, pre-retirees are not spending as much time as needed to plan for retirement.

• Sixty-six percent of pre-retirees who have spent time planning for retirement say they spend the same amount or more time with home improvement than with retirement planning; 60 percent say they spend the same amount or more time planning for college education for children.
• Nearly half of pre-retirees (49 percent) spent five hours or less actually planning within the past year. Of all pre-retirees, 18 percent admit they have spent no time planning.

What's even more surprising is that 31 percent of pre-retirees say they would rather clean their bathroom or pay bills than plan for retirement.

It's clear that when planning for retirement, Americans are most focused on the financial aspects and not thinking closely about their health benefits.

• Thirty-six percent of those who have planned for retirement in the last year say they are most focused on contributing to a 401(k), 403(b) or IRA.
• Only 5 percent of people who have planned for retirement in the last year are most focused on evaluating their health benefits.

Pre-retirees who have spent time planning for retirement in the past year rely most on the following sources for retirement planning information and advice: Certified Financial Planners (34 percent), employers (17 percent) and public websites (12 percent).

Health Benefits

Seventy-two percent of pre-retirees who have planned for retirement in the last year have spent five hours or less planning for their health benefits in retirement.

Although the majority (76 percent) of Americans surveyed said they are not confused about their health benefits, 63 percent say that "people they know" are very or somewhat confused.

Fifty-three percent of Americans surveyed would choose health benefits, if they had a choice between receiving health benefits (paid for to supplement Medicare) or a pension in retirement.

As expected, a majority of pre-retirees and retirees anticipate the following costs in retirement:

• Prescription drugs (80 percent)
• Doctor checkups (84 percent)

Some surveyed even expect retirement health care expenses related to:

• Alternative medicine (29 percent)
• Cosmetic surgery (5 percent)

Even though eight out of 10 Americans (according to the Kaiser Family Foundation have had at least some experience with nursing homes, either as a patient or a visitor, not all surveyed anticipate needing this care themselves (47 percent do anticipate long-term care or nursing home expense).

The majority of pre-retirees have received information about investments or financial planning (70 percent) for retirement from their employer, but fewer have received information about retirement health benefits (53 percent).

Eighty-three percent of Americans (both pre-retirees and retirees) surveyed were not able to correctly identify Medicare Part D. Of the 36 percent who have heard of this new benefit, only 48 percent could correctly identify the description from a list of choices.

Retirement Fears and Goals

Pre-retiree men and women agree that the most challenging thing about planning for retirement is that they are "not sure how much money I will need" (34 percent). This may be paralyzing pre-retirees from planning because 48 percent say they have not started or have planned minimally.

Retirees and pre-retirees agree: Their primary reason to save for retirement is/was "to be as independent as long as possible" (45 percent, 37 percent).

Forty-two percent of Americans surveyed said their biggest concern about retirement is having enough money to live comfortably. Only 13 percent of people are most concerned about having adequate health benefits, even though 63 percent of pre-retirees do not expect health benefits through an employer in retirement. The majority (76 percent) of Americans surveyed said they are not confused about their health benefits, but 63 percent say that "people they know" are very or somewhat confused.

A majority of Americans (74 percent) say they factored Social Security and Medicare benefits in their retirement plan, yet a large percentage (77 percent) are concerned about the financial issues facing these programs.

• Retiree and pre-retiree women are more likely to be concerned than men about the financial issues facing Medicare and Social Security.
• Overall, the younger group surveyed (ages 45-54) seem to be more concerned about the financial issues facing Social Security and Medicare than people 55-75.
  • Ages 45-54: 52 percent very concerned/Social Security; 47 percent very concerned/Medicare.
  • Ages 55-75: 41 percent very concerned/Social Security; 42 percent very concerned/Medicare.

Retirement Spending

Most people surveyed (52 percent) say they expect to spend less than $300 per month out-of-pocket on health care-related expenses. This estimate is low, according to the Employee Benefits Research Institute (EBRI). In fact, most retirees spend more than $640 a month on out-of-pocket health care-related expenses.

Fifty-four percent of pre-retirees expect to work past age 65.

Nearly 40 percent of retirees say they spend more than they expected on health care costs since retirement.

Based on their experience, the one thing retirees would recommend pre-retirees do to plan for retirement is "save more than you think for living expenses"(33 percent).

Retirement Health

Both pre-retirees and retirees say that "good health" is most important to them in retirement (37 percent, 39 percent). The second most popular recommendation from retirees is for pre-retirees to take better care of their health (19 percent), second to "save more than you think for living expenses" (33 percent).

Overall, pre-retirees and retirees say that cancer (26 percent) and heart disease (22 percent) are their biggest health concerns in retirement.

• Retired men are most concerned about heart disease (25 percent) followed by cancer (22 percent), whereas women are more concerned about arthritis than men (13 percent, 5 percent). Women should be most concerned about heart disease because one in 2.5 women will die of heart disease or stroke, compared with one in 30 from breast cancer.