Investors Want Financial Planning to Include Health Care Costs

Eighty-one percent of Americans believe it would be very or extremely valuable for their financial adviser to include health care costs in their retirement planning, according to research by Transamerica and Luntz Global Partners.

When asked what is the most essential for their financial future, 37% said their health, followed by happiness (19%), security (19%), peace of mind (16%) and independence (9%).

“Being aware that health is of paramount importance to clients in building their financial security, advisers should use that knowledge to suggest solutions that take into account the full scope of their essential long-term needs,” says Dave Paulsen, chief sales officer at Transamerica. “It’s clear that better conversations result in healthier and stronger relationships between advisers and clients when discussing their finances and financial future.”

The research is based on a survey of 1,000 adults and focus groups held throughout the country, which required the participants to have a minimum household income of $75,000 and investable assets of $50,000 or more.

Transamerica has developed a micro site to help advisers approach clients’ financial wellness holistically: “How to Effectively Engage Clients.”

A recent survey by Edward Jones found that 60% of Americans are worried about paying for health care costs in retirement. Fidelity projects that a couple retiring this year will need $260,000 to pay for their health care costs throughout their retirement, a 6% increase from 2015.