Americans are living longer -- the 65-and-over population is projected to nearly double over the next three decades, from 52 million to 95 million by 2060 -- which means they're living longer in retirement. 1 If you’re worried about the impact healthcare costs may have on your retirement income, you’re not alone—and you’re right to want to prepare.
Inflation, health care affordability and paying for a nursing home or long-term care are top concerns of pre-retirees and retirees. Three in four pre-retirees and more than half of retirees worry about these financial challenges in retirement. 2
Costs you may need to cover
Early in retirement, healthcare costs may be limited to premiums for a medical plan. But your needs might grow later, requiring you to find money for things like a chronic health issue, ongoing prescription needs, hospital stays or even assisted living.
How variable annuity income can help
People often focus on covering everyday expenses in retirement but may overlook strategies to address increasing expense like healthcare. Variable annuities allow you to invest in a variety of asset classes—transferring between them as needed—which could potentially increase your retirment income over time.
Do you know what’s in your employer plan?
The good news is your employer may offer TIAA and CREF annuities that can help you create a retirement income plan to help address the needs and risks you may face in retirement.