Data & Research April 28, 2010

Retirement and Uninsured Medical Expenses Top Financial Concerns

A new survey found uninsured medical expenses rival retirement savings as the most pressing financial concern for Americans.

Reported by

Fred Schneyer

The survey by the American Institute of Certified Public Accountants (AICPA) found that while 12% of respondents cited having a sufficient retirement nest egg as their most serious money concern, 11% pointed to uninsured health expenses, up from 8% in 2009.

According to a release of the results, 86% reported having some form of health insurance; however, 58% of those with coverage have seen their premiums go up in the past year. Just over half of the insured say their premiums have increased up to 10%, while a quarter said their premiums went up 11% to 20%. A total of 17% said their premiums have increased more than 21%.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters. 

For the uninsured, the most common reason why they don’t have health insurance is that they can’t afford it (47%). Seventeen percent indicated their employer doesn’t provide health insurance or that they are currently unemployed (16%).

The AICPA participated in the Harris Interactive March 2010 Harris Poll Quorum telephone omnibus study. The interviewing took place from March 17 to 21 among 1,009 U.S. adults ages 18 and older.

You Might Also Like:

Data & Research

April 10th, 2025

Milken Institute Supports Steps to Increase Adoption of In-Plan Lifetime Income Solutions

The think tank says three things would expand access: labeling in-plan lifetime income solutions as distinct asset classes, refining safe...

Data & Research

March 20th, 2025

Younger, Do-It-Yourself Investors Interested in Human Financial Advice

A J.D. Power study finds traditional wealth management firms may be missing out on attracting younger investors.

Products

February 5th, 2025

Empower Expands Benefits Services With Consumer Directed Health Care Offering

The CDH product suite is being offered through a partnership with Alegeus Technologies LLC.

Data & Research April 28, 2010

Fidelity Finds Confusion about Roth Conversion Rules

While investors demonstrated more knowledge about Roth IRAs than last year, many still do not understand the tax implications of a Roth, according to a Fidelity Investments survey.

Reported by

Rebecca Moore

The survey of investors with both retirement plan assets at former employers and annual household incomes of more than $100,000 showed that awareness of the Roth IRA conversion opportunity has increased over the past six months, but is still relatively low. According to the survey, 35% of respondents are aware of the Roth IRA conversion eligibility changes, up from just 12% in a Fidelity survey conducted in August 2009.

Nearly half (45%) said they know whether their 401(k) assets qualify for a Roth IRA conversion, up from only one-third (33%) in 2009. However, 55% of newly eligible investors who have old 401(k)s with former employers are still not certain whether their assets can be converted to Roth IRAs.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters. 

When asked about the biggest barriers to converting assets to a Roth IRA, one-third (33%) of respondents said they do not understand the tax implications of converting to a Roth IRA and 22% are confused by the conversion process itself.

According to Fidelity, before being provided with any information, respondents were asked whether they had ever considered rolling 401(k) assets from a former employer to a Roth IRA, and only 24% said yes. After receiving information about the benefits of a Roth IRA, nearly six in 10 (58%) said they would be likely to investigate converting their 401(k) with a former employer to a Roth IRA and half (50%) said they were considering rolling into one, but had not yet made a decision.