In retirement, personal finances and health care costs go hand in hand. A lack of preparation for one can expose you to serious risks in the other, as illustrated by new original research published today by eHealth, Inc. and our partner Retirable, a retirement peace of mind platform offering products and services across the retirement, investing, planning, spending and protecting spectrum.

To better understand the intersection of health care and personal finances in retirement, we jointly commissioned a general population survey of Americans age 60 through 70, some already retired and enrolled in Medicare, others anticipating retirement and Medicare eligibility. Over 520 responses were collected.

Here are some of the key findings from our report:

• The cost of health care is the #1 financial concern in retirement: Overall, 63% cite health care costs as a top worry in retirement, ahead of running out of money (58%) and inflation (53%).
   
• Worry about costs is cramping retirees’ lifestyles: 55% say concerns about health care costs cause them to spend less than they would otherwise.
   
• Only one third have saved money specifically for health care costs : Only 33% of those currently retired saved any money specifically for health care costs they might face after retiring.

“Selecting the right Medicare health plan for your personal needs and budget is an incredibly important financial consideration in retirement,” said eHealth CEO Fran Soistman. “Affordable premiums are key, but it’s also important to look beyond premiums. By choosing a Medicare insurance plan that properly aligns with your personal health care needs, you can minimize or avoid unnecessary out-of-pocket costs.”

“Medicare beneficiaries understand the value of working with a licensed agent when choosing their coverage, but too few understand the value of working with a financial planner specializing in retirement,” said Retirable CEO Tyler End. “The insights we’re sharing today illustrate the need for smart, long-term retirement planning, whether you’re approaching retirement age or already retired.”

Additional highlights from the report:

• Most don’t think their money will last through retirement: Among current retirees, only 42% believe they will have enough money to last through retirement; among those not yet retired, that figure is 29%.
   
• Non-mortgage debt is a hurdle for many: Overall, 46% of respondents have non-mortgage debt; among these, nearly 80% are in debt $5,000 or more.
   
• Financial scams and identity theft worry many: 73% express concern about financial fraud and identity theft; 39% have had their identity stolen or been a victim of fraud.

Read the full report.

Report findings are based on a survey of 521 American consumers ages 60 to 70, drawn from the general population. Among the respondents, 68% said they were currently retired, while 58% said they were currently enrolled in Medicare. The survey was conducted in March of 2024. Additional information is provided in the methodology section of the report.