An individuals' decision to retire often depends on access to health care, according to a new AARP report.
More than 25 percent of Baby Boomers spend at least 10 percent of their income on health care. By comparison, a lower percent -- 16.7 percent -- of adults age 18 to 49 spend 10 percent of their income on health care.
The disproportionate cost is especially acute for Baby Boomers who are at the cusp of a decision about when to retire.
In looking at the costs of health care for Americans 50 to 64 years old, the report from the AARP Public Policy Institute says, "The rising cost of health care has made access to adequate, affordable health care coverage problematic for many in this age group."
The information is contained in the report entitled: "Health Care Reform: What's at Stake for 50- to 64-Year Olds"
While finances certainly are an important part of the decision to retire, especially these days with retirement funds like 401(k)s taking a beating, having health care and its cost is a key factor.
The vast majority of older adults rely on health plans through their work. "... the loss of employer-sponsored health coverage because of job loss or retirement is problematic for anyone 50 to 64," says the report.
Looking ahead to the coming national debate on health care reform, the report summary noted "it will be important to look at how well they serve people who are most at risk in our current system, including adults ages 50-64."
Any health care reform, said the report, will need to address:
- Access to coverage for those not covered through an employer,
- Cost and access barriers in the private individual market,
- Absence of a backstop for many who cannot obtain or afford private coverage.
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