Do older adults understand healthcare risks, and do advisors help?

Abstract

The brief's key findings are: (1) Uninsured healthcare costs in retirement can be substantial, so older households need a good understanding of the potential risks. (2) New survey results show that many underestimate their healthcare needs and know little about the costs of medical or long-term care services. (3) In contrast, financial advisors have a better sense of needs and costs, but households with advisors do not seem to know more than those without. (4) As a result, many retirees may not protect themselves against health shocks, forcing them to make difficult changes to cover shocks when they do occur.