Healthcare Costs Key to When and Where US Investors Retire

June 15, 2011

gallup-investors-retire-june-2011.JPGSeventy-two percent of non-retired US investors say the cost of healthcare is a major determinant of when they retire, according to the May 2011 Wells Fargo/Gallup Investor and Retirement Optimism Index poll. These Americans rank healthcare above the five other factors tested in the survey.

Energy Cost Grows Most as Retirement Factor

While 48% of non-retired investors cited the price of energy, including gas and oil, as a retirement factor in February 2011, that figure shot up 25% to 60% in three months. Healthcare cost remained the most popular factor, but only increased 7% from 67% of investors citing it in February. No factor had fewer investors citing it in May than February. One factor, investment market conditions, was not mentioned in the February poll.

Medical Care, Taxes Surface as Main Issues in Where Investors Will Retire

gallup-retirement-live-june-2011.JPGSixty percent of non-retired investors say being located near good medical facilities will be a major factor in determining where they will live in retirement. This is consistent with the 54% of current retirees who say healthcare was a major determinant of where they decided to retire.

Among the four other factors evaluated, non-retirees ranked low state and/or local real estate taxes second, at 52%. But, no other factor was nearly as important as healthcare as far as current retirees are concerned.

Non-retired Investors Place Importance on Their Homes

The May investor poll asked non-retirees and retirees a number of additional questions about housing and retirement. Key findings include:

  • Most retired American investors surveyed own their home (93%) and a majority feel it is now worth more than when they bought it (75%).
  • Most non-retired Americans have a mortgage (80%), while 19% have paid off their mortgage.
  • Eighty-six percent of non-retired investors feel it is “very” or “somewhat important” that they have their mortgage paid off when they retire.
  • Another 58% of non-retired investors see their home as an investment asset that will help fund their retirement. Of those, 42% say their home will help fund their retirement by providing them with a place to live and 39% say it is “an asset to sell to add to retirement funds.”
  • About one in three non-retired investors (31%) say they would consider renting throughout their retirement.

Retirement Concerns Grow

A 53% majority of non-retired Americans do not think they will have enough money to live comfortably in retirement, up 40% from 32% who felt this way in 2002, according to results of an April 2011 Gallup poll. This figure is also up about 10% year-over-year from 48%.

About the Data: The Wells Fargo/Gallup Investor and Retirement Optimism Index results are based on questions asked on the Gallup Daily tracking survey of a random sample of 1,099 US adults having investable assets of $10,000 or more from May 2-11, 2011.

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