US Workers Expect AI to Extend Human Longevity, Increase Retirement Needs
A Nationwide survey found that Americans are bullish on artificial intelligence but less confident in their ability to pay for health care costs at increasingly older ages.
As artificial intelligence improves medical capabilities that can allow humans to live longer, Americans could be paying for health care costs for significantly longer than they expect, according to the annual Nationwide Retirement Institute Health Care Cost in Retirement survey.
Among respondents, 26% said they expect AI advancements in health care to add more than a decade to their lifespan. Of those, Generation Z respondents said they expect AI to add an average of 15 years to their life, Millennials 12 years, Generation Xers 8 years and Baby Boomers 9 years. The head of the Nationwide Retirement Institute agreed with the assessment but noted the continued income needs that will come with longer lifespans.
“While the potential of living longer is good news, dipping into your retirement savings for an extra decade requires planning,” Kristi Rodríguez, senior vice president of the Nationwide Retirement Institute, said in an email response. “Unfortunately, too few Americans are financially planning for the additional health care costs of an extended retirement. Americans who work with financial professionals tell us they have clear expectations that managing health care costs should be a part of their planning discussion.”
To that point, more than half of respondents (59%) said they are not confident in their ability to afford health care costs as they age, and 57% worry about being able to pay for their partner’s caregiving, according to the survey.
To save money, almost one out of every five adults (18%) delayed health care actions such as a medical procedure, physical exam or renewing prescriptions in the past 12 months, Nationwide found. To find additional savings, 10% of Americans considered downgrading their health insurance plan because of high inflation. This decision included 19% of Gen Z, 11% of Millennials and 14% of Gen Xers.
“In a country where 100 million people live with medical debt, it’s no surprise that two-thirds of U.S. adults (66%) are terrified of what health care costs may do to their retirement plans and worry that a single large health care issue could ruin their finances for years to come,” Nationwide noted in a statement. “Even more Americans (72%) say that one of their top fears in retirement is their health care costs becoming out of control.”
According to the same Nationwide dataset, most Americans with chronic conditions (69%) said they do not have a written financial plan for how to, in retirement, pay for the health care costs related to their condition. Additionally, nearly seven in 10 Americans (68%) do not work with a financial professional.
“Our survey shows that Americans need more knowledge, guidance, and ongoing support to make informed decisions about their financial plans,” Rodríguez added in a statement. “By incorporating health care into financial planning conversations, financial professionals can help clients better prepare for the rising costs of health care.”
The Nationwide report was conducted online in the U.S. by the Harris Poll from August 28 to September 11, surveying 1,260 adults aged 18 and older and residing in the U.S., including 301 from Generation Z, 310 Millennials, 307 from Gen X and 342 Baby Boomers.