A new survey shows many Americans are flatly unaware that they can use their health savings account assets accumulated in their working years to pay for health care and long-term care expenses in retirement—believing erroneously the money must be spent or be forfeited each year.
According to the firms, the “one wallet” approach provides employees with a holistic view of their overall wealth and health when electing their workplace benefits.
Manning & Napier created a set of reference guides to break down exactly what individuals need to know about the new tax law, Social Security, Medicare, and long-term care going into 2018.
The initiative comes after Transamerica studied the parallel nature between physical and financial lifestyles.
“I really like the idea of promoting default-driven plans, and the evidence is abundantly clear that automatic retirement plans can be very effective,” says Jeff Kletti at Wells Fargo. “However, my experience has been that the pendulum can swing too far in terms of mandates.”
Retired couples, according to EBRI research, can require up to $370,000 to cover premiums for Medicare Parts B and D, premiums for Medigap Plan F, and out-of-pocket spending for outpatient prescription drugs.
However, employers will likely have some difficulty in knowing how to handle the January 1, 2018, effective date that has been assigned for many provisions in the House and Senate tax reform proposals, especially for the purposes of income tax withholding.
More than half of Millennials struggle to pay their doctors’ bills or have an acquaintance who does.
Options are available, though, to mitigate the jump and provide more affordable care.
Survey results indicate that 67% of Americans reported at least one chronic health condition.
The list of regulatory and legislative challenges affecting employers and their retirement plan consultants can seem endless, and when linked to the increasing litigation from the plaintiffs’ bar, it can seem impossible to reach a point of certainty.
The complaint states that Johns Hopkins has not prudently managed its 403(b) plan, but a district court judge disagrees, at least on several aspects of the complaint.
The combined services of the firms are being rolled out in response to employers asking for a comprehensive investment strategy that ties health and retirement benefits together.
“Adding deductibles, copays, hearing, vision, and dental cost sharing, the number grows to $607,662 in future dollars,” the research states.
Fidelity reports that a record number of plan sponsors are actively looking to switch their plan advisers.
The district court had previously ruled against the plaintiffs’ motion for a preliminary injunction, finding AARP did not prove irreparable harm to its members was likely; yet in the end AARP has prevailed in its challenge.
The 2017 estimate of $270,000 in anticipated health care expenses for a retiring couple is 6% greater than last year’s figure and represents a 70% increase since Fidelity’s initial retiree health care cost estimate in 2002.